You can put it in a ROTH IRA. Or make a non deductible contribution to a Traditional IRA. If you take a IRA Deduction for it on your tax return then it will be taxable when you take it out. If you don't take a deduction you have a basis in your IRA. You need to fill out the 8606 to keep track of your basis so when you take a distribution you don't pay tax on it again.
