Skip to main content
No. of Recommendations: 0
Q2: In situations where IRA contibutions are not deductible (income limits or 401k plans, etc.) can I still contibute to an IRA to enjoy the tax deferral on the interest earnings? Are there limits to these contributions?

Yes, you can contribute a max of $2000/year to a traditional IRA, regardless of your income. The interest/dividends/capital gains accumulate tax-deferred. However, if you can't deduct the IRA contribution, consider opening a Roth IRA. While the contribution is not tax-deferred, the interest/dividends/capital gains accumulate tax-free, as long as the account is open for at least five years. I believe the income limits are $100K for singles, and $150k for marrieds.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.