roth ira eligibility irs
any advantages in nondeductible IRA contributions vs putting $in the same portfolio/funds at a brokerage acct.
If you couldn’t meet the eligibility for deductible contributions in trad. IRA or ROTH. what are the advantages of still putting money in an IRA as nondeductible contributions. What bothers me is the need to report this to the IRS via form 8606. Should I just put the money at my brokerage account. (I will be using the same funds in the portfolio)
First, an IRA and a brokerage account are not mutually exclusive. Your IRA can be in a brokerage account.
The only advantage I can see in the IRA is that the gains and other income are not taxed until you withdraw the money. Depending on your age, that could be years from now. The disadvantage is that IRA capital gains are taxed at ordinary income rates when you withdraw the money. In your personal brokerage account, long-term capital gains are taxed at preferred rates.
