Greetings all
Hope I'm posting this in the correct section - you're invited to advise this newcomer:
1. Can individuals still contribute to traditional IRAs even though they make too much for the contributions to be deductible (and they are precluded from contributing at all to a ROTH)?
2. If so, even though the initial contribution is not tax deductible, the account will grow tax deferred?
3. Then, a few years down the road when moving to part-time jobs and thus lower income rates, can these traditional IRAs convert to ROTH IRAs - thus (sort of) making up for the years of not being able to contribut to ROTH accounts? (I realize there are taxes to be paid if allowed to convert).
Thank you!
spncity
Hope I'm posting this in the correct section - you're invited to advise this newcomer:
1. Can individuals still contribute to traditional IRAs even though they make too much for the contributions to be deductible (and they are precluded from contributing at all to a ROTH)?
2. If so, even though the initial contribution is not tax deductible, the account will grow tax deferred?
3. Then, a few years down the road when moving to part-time jobs and thus lower income rates, can these traditional IRAs convert to ROTH IRAs - thus (sort of) making up for the years of not being able to contribut to ROTH accounts? (I realize there are taxes to be paid if allowed to convert).
Thank you!
spncity