this post was submitted on 28 Oct 2023
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Do you basically get double taxed if you make non deductable contributions to a traditional ira? Why do it? (endlesstalk.org)
submitted 1 year ago by [email protected] to c/[email protected]
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In the US, if you make a lot, are covered by a work retirement account or you contribute to a Roth, you can't deduct traditional ira contributions right?

So that money gets added to the rest of your traditional ira monies right? and then when you hit retirement age, you have to pay income level taxes on deductions on that already post tax money right?

Why get taxed twice? What's the benefit? +Not being able to touch it til retirement age.

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[–] sugar_in_your_tea 1 points 1 year ago

That's true if you get the tax deduction. If you don't get the tax deduction, a traditional IRA, is like a brokerage account but you pay regular income tax instead of capital gains tax on the gains.