a taxpayer has a high income, let's say $400k AGI.
Can he make non-deductible contributions to a traditional IRA? If so, he
must deal with form 8606, as noted in other recent threads. If he makes a
withdrawal before the magic age (I forget the age, but this guy is in his
50s), are their penalties applicable, and must the withdrawal be pro-rated
between the deductible contributions (made earlier, when he was not as well
off) and the non-deductible contributions?
I guess these details are soliciting the answer to this broader question:
are there meaningful tax advantages to be had by a high AGI guy via IRAs?
Not familiar with Roths, I don't even know the questions to ask in a similar
vein for this guy.
- posted 11 years ago