Author Topic: Non Deductible Traditional IRA verse a tax managed fund /brokerage account  (Read 1292 times)


  • 5 O'Clock Shadow
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  • Posts: 11
Question for the guru's.. I am not eligible for a deductible traditional IRA contribution or eligible for any ROTH IRA contributions, due to declaring taxes as married but separate, additionally I will have a pension income in the future, along with a 457 deferred compensation retirement account. Deferred compensation accounts when withdrawn are calculated as ordinary income along with pension income. I expect to be earning more in retirement than I make currently working, and would like to conservatively assume higher income tax rates / and or brackets when retired than now while working.

I understand the benefit of an non deductible ira is tax deferred growth, but the down side is withdrawals are taxed as ordinary income.
I understand that a tax deferred account has taxed growth but withdrawals are taxed as long term capital gain, although just as one can assume higher income taxes in the future beyond just being in a higher tax bracket, I imagine capital gains taxes may rise two.

I am leaning to a non ira, tax managed account, let me know what you think.


  • Handlebar Stache
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  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Three words:

Back door Roth.

I wrote a post here,

[MOD EDIT: Link removed.  Please stop spamming links promoting your own site.  A single link in your signature is sufficient, and will be under every post you make.  Thanks.]

White coat investor also has some nice back door roth articles.

the key is rolling your IRAs Into your 401K or. 403b account so you are not effected by the pro rata rule.   

« Last Edit: May 20, 2014, 09:05:41 PM by arebelspy »