No. of Recommendations: 4
What would be the advantage of an after-tax IRA?

Another advantage, as compared to a taxable investment, is lack of some record keeping requirements. I am not eligible for a Roth, have already contributed to 401(k) and have the ability to contribute to a non-deductable traditional IRA. I use this investment exclusively for stocks that I hold for short time periods (ie. follow Mechanical Investing screens)and don't have to keep track of transactions. As long as I submit the 8606 forms for correct basis, I can trade all I want and just pay taxes when I start withdrawing from the IRA.

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