Retirement savings WWYD

[lgb78]

Would you contribute to a non-deductible IRA in this case?

My husband and I each max out our 401k's plus have a company match (me = 5%, DH = 6%). We previously contributed to a Roth IRA, but can no longer do so as we exceed the income limit.  Also, we are not eligible for a deductible IRA, so the only option available is a non-deductible IRA.  I guess I don't see the benefit of doing this.  My thoughts are that we would just contribute to some sort of investment account instead.  Am I missing something?  Do we have other retirement options that we should consider?

I am 34, DH is 37.  We each have approx. 1.5-2 years of current income saved for retirement (between 401K, IRA and deferred comp).

[Deleted]

I would just put money into the brokerage acct. Then you can use it for other things or retirement.

[savan]

We are in a similar situation and do a back door Roth. We contribute to a non-deductible IRA and immediately convert it to a Roth IRA. There are no income limits to do so but it works best if you do not have currently have other IRAs with pre-tax money in them. Otherwise there are additional tax implications.

[gt7301b]

I'd do the back door IRA and convert to a Roth after you make your contributions.