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non deductible ira contribution

Is It Really Allowed – Making a Non-Deductible IRA Contribution Followed By a Roth Conversion?

Understanding the Roth Conversion of previous non-deductible IRA contributions. Also known as the Back Door Roth contribution.

Does Your IRA Include After-Tax Money?

Or: There’s Basis In Them Thar Funds! If you have an IRA that has certain types of funds in it, you may be in a position to have some of your distributions treated as post-tax, meaning that you will not have to pay ordinary income tax on the distribution as you normally would.  But what kinds of money is considered post-tax? The common way to have post-tax funds in an IRA is to make non-deductible contributions to the account.  This occurs when you are not eligible to make deductible contributions due to income restraints, but you still wish to make IRA contributions for the year. For example, if in 2012 you have income in excess of $112,000 ($68,000 if single) and you’re covered by a retirement plan at work, you can still contribute up to $5,000 (plus $1,000 if over age 50) to an IRA – you just can’t deduct […]