Traditional IRAs are a great way to lower your tax burden in the short term by allowing savers to set aside tax-deductible money for retirement. Roth IRAs, on the other hand, allow individuals to boost their retirement savings with after-tax dollars — meaning they can withdraw the money tax-free in retirement.
But if you’re a high earner, you may not qualify for contributions to a traditional IRA or a Roth IRA. In that case, a nondeductible IRA could be a good alternative way to save for your retirement. This article from U.S. News Money explains how nondeductible IRAs can come in handy for high-income retirement savers.
This article was written by U.S. News Money, an entity unrelated to HoyleCohen, LLC. The information herein is intended for educational purposes and has been selected by HoyleCohen due to the timeliness of the subject matter.
