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Get your taxes done using TurboTax
Yes, since you are over the limit and have a retirement account at work your contribution to the traditional IRA is nondeductible.
Only the amount allocated to the basis will be not taxable when withdrawn. The amount allocated to the earnings will still be taxable. You might want to consider the backdoor Roth IRA strategy if you want to withdraw money tax-free later.
IRA basis is required to be tracked on Form 8606, Nondeductible IRAs.
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ā€ˇFebruary 8, 2021
1:31 PM