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To take the contrarian stance in this discussion, the "tax advantage" of a non-deductible IRA depends on what you hold in it.

Assuming you hold mutual funds, all growth (dividends, capital gains, increase in NAV) is taxed as ordinary income when it comes out of the IRA (if you hold stocks, the growth is dividends and the increase in share price).

But if you place your $2000 amount into a regular, taxable account, and hold funds that do not realize capital gains often (like S&P 500 or other index fund), or hold individual, non-dividend growth stocks, you realize the capital gain when you cash out a portion during retirement.

Ordinary income is currently taxed at a higher rate than ordinary income at the federal level and at most state levels. So, it seems to me that, if you intend to let it sit and cook for many years, you can arrange to keep more of your own money in a tax-manageable account instead of a traditional, non-deductible IRA.

I'm sure there are other views on this but, for myself, I can"t see how a non-deductible IRA helps me.

Oh, and remember the three rules that "mom" taught you.
1) Past performance is no guarantee.........
2) Don't let the tax tail wag the investment dog.
3) You cannot predict how Congress will tax you in the future.
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