Why would I choose to not take my IRA deduction?
Occasionally, it may be advantageous to not deduct otherwise deductible contributions to your traditional IRA, but this is not common.
The following are a few potential situations where this may make sense:
The following are a few potential situations where this may make sense:
- If you make a traditional to Roth IRA conversion, any nondeductible contributions in your traditional IRA will not be taxed when converted to a Roth IRA.
- Future IRA withdrawals can be tax-free (Earnings will still be taxable at withdrawal).
