Our household is past income limits for contributing to Roth IRAs or being able to deduct contributions to traditional IRAs. We do max out both of our 401ks, and when rates come up on iBonds a bit more, we may start buying the yearly max of those as well. I've seen a couple of posts over on the Bogleheads forum where people mention contributing to non-deductible IRAs, and I was wondering if any of you do so. Either way, what are your reasons for contributing or not contributing?
I am in such a situation, maxing out 401k and so on, my MAGI is too high for opening a roth-IRA, so I am putting some money aside on two regular IRAs (one for me, one for my wife). This is growing tax-deferred, and giving me more flexibility for investments which aren't suitable for a tax-exposed investment vehicle (e.g. I have REIT ETFs in there, and I'm thinking to add some TIPS). Without such IRA vehicle, I would have more trouble complying with my target AA with my various investment accounts.
Also, when I'll early-retire, my tax bracket is going to drop quite significantly, and I will then roll-over to a roth-IRA at low cost. And 10 years from now, I'll start withdrawing some of that money tax-free. Better than paying taxes on dividends now!