Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I contribute to a traditional 401(k) with matching at work. I am not eligible for a Roth IRA. I have been contributing the max to a traditional IRA for quite a few years, with no tax deduction, and I am starting to wonder if it's likely to my advantage. I've always "reasoned" that if tax rates, capital gains, etc. all stay the same and my retirement income/withdrawals put me in a lower tax bracket, I should come out money ahead in the traditional IRA. But my time horizon is up to 16 years (70½) and I don't see how tax rates and/or capital gains won't increase substantially (I once assumed they wouldn't change appreciably). Just asking for a second opinion on non-deductible IRA's vs leaving the money in taxable?
If it matters, my holdings are all low-expense (index) mutual funds, almost no trading - rebalance with new money, and I have access to the universe of options either way. And I'm about 2/3 taxable, 1/3 sheltered already if it matters.
If it matters, my holdings are all low-expense (index) mutual funds, almost no trading - rebalance with new money, and I have access to the universe of options either way. And I'm about 2/3 taxable, 1/3 sheltered already if it matters.