If you have a 401k and have a certain amount of income, you might not be able to contribute to a traditional or Roth IRA.  If you have some additional money you want to put into retirement, there is the nondeductible IRA.  Anyone with $5500 in earned income can make a nondeductible IRA contribution.  The bad news – you don’t get a contribution deduction and have to track your contribution basis in the IRA.  The good news – you still get tax deferred growth on the earnings in the account, just like a regular IRA.  See this article in Market Watch by Kenneth Roberts for more details:

http://www.marketwatch.com/story/is-a-nondeductible-ira-contribution-worth-the-trouble-2014-11-07

Anyway, over time the tax deferred  earnings growth could significantly increase your earnings by not requiring you to pay tax on the earnings until you withdraw them – that is definitely a good point.

  For financial,  accounting and tax musings,