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Roth Individual Retirement Account: This is similar to the traditional IRA except the contributions to a Roth IRA are nondeductible.
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Changing the rules so all distributions are deemed to come first from any nondeductible contributions would simplify matters and reduce tax bills, Labant said.
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If you make too much, you can still pay into a traditional but nondeductible IRA and then transfer the money to a Roth later.
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If nondeductible contributions made up 20 percent of the account's value, then only 20 percent of the withdrawal would escape tax.