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Old 11-14-2007, 11:49 AM
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MonkeyMama MonkeyMama is offline
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Yes, you can contribute to a Traditional IRA, without a deduction, like Steve said.

In 2010 there is a tax loophole where you can convert this into a ROTH, regardless of income. IF I were you I would contribute the max to regular IRAs through 2010. In 2010 you can convert it all to a ROTH and combine it with your ROTH. It will grow tax free to retirement (or until tax law change anyway).

I'd go with that plan and then see what happens to the tax law under the next presidency. Lord knows, anything can happen.

Even without this loophole, you would still delay taxes on earnings until retirement. So a non-deductible IRA is a good bet if you don't qualify for anything else.

Your next best bet is to get married or find a job with a 401k. (e.g. if you are paid the same and put the max in your 401k it would lower your taxable income -and probably your taxes - enough to also allow you to contribute to a ROTH too. win-win).

http://finance.yahoo.com/expert/arti...ymatters/16201
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