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iwannabeafool wrote:
I am now out of the income range for the ROTH, so should I now put that money in a regular Roth, or invest it in a taxable account? What are the pros and cons?

I think you mean a regular IRA.

The benefit of a regular IRA, that you cannot deduct is limited to sheltering all gains until you withdraw the money during retirement (or other times under special rules). Then, as with any IRA, all distributions are taxed at ordinary income tax rates.

It is quite easy with a spreadsheet to show that this is a better investment than most plans due to the ability to reinvest all gains without paying yearly taxes. The one possible exception would be if you invested in stocks that appreciated without paying any dividends, and you never sold them until you retired )or needed income). Then your tax rate would be the long term capital gain rate, which is currently 20%. This approach might work, but I would worry about the stocks turning down and having to sell them early. This would ruin the shelter effect of the stocks.

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