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What Is a Nondeductible IRA?

By Robin Hartill, CFP – Updated May 1, 2025 at 12:33PM

Key Points

  • Traditional and Roth IRAs are common retirement savings accounts, but income limits may restrict contributions.
  • Nondeductible IRAs grow tax-free and are an option if you earn too much to deduct your traditional IRA contributions.
  • Reporting nondeductible IRA contributions on IRS Form 8606 helps you avoid double taxation.
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