Non-Deductible Traditional IRA vs. Taxable Account?
Currently my income is too high to take the deduction for a Traditional IRA. It is also too high to contribute to a Roth IRA.
For the past few years, I have been making non-deductible contributions to my traditional IRA. I am wondering if this is the best use of my money? Or is contributing to a taxable account a better idea?
The investments in this account are all low cost, passive funds that mimic the S&P500 or some other index. I will make maybe 1 or 2 trades every 5 years to account for re-balancing. I'm 32 years old and expect to have 30 years to retirement.
I understand the mechanics of a back door Roth IRA and its advantages. I do intend to take advantage of this rule, but for the moment, I'd like to get an opinion on the non-deductible traditional IRA vs. a taxable account.