Retirement Planning/non-deductible IRA


I make about $150k a year and would like to put away some money for retirement. I've already maxed out my 401k and I'm considering contributing to a non-deductible IRA. Since I don't get an immediately tax benefits for contributing to an IRA I'm hesitant...should I contribute to a non-deductible IRA or a regular stock brokerage account? I believe I can access my money easier via a stock brokerage account. Are there any benefits to having a non-deductible IRA at all? Thank you!

Hi David,
There really is no benefit to contributing to a non deductible IRA. Since you are maxing out your 401k you might want to consider a vehicle where the withdrawals are non taxable. A brokerage account would be better than the non deductible IRA but we don't know where capital gains rates are going. A Roth IRA might be a good choice but if you are single, you make too much money. If you are married and your combined income is under $183k, you could open a Roth. Another option could be an over funded high cash value life insurance policy. I use these often with my clients. It's safe and if set up properly, you can get a great return and tax free retirement income. You also would have easy access to the cash value. I hope this helps!


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David M Iannopollo


I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!


I have over 25 years experience in the business and financial world.

Life experience has been my greatest education!

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