Separate accounts for nondeductible and deductible IRA contribs?
Sir/Madam,
I have a client who is concerned about combining nondeductible and deductible contributions within the same IRA account.
My thinking is that as long as he files Form 8606 and keeps good records, this shouldn’t be an issue.
Why would a client want two separate IRA accounts- one for nondeductible contributions and the other for deductible contributions? What might I be missing here?
Thank you in advance.
Permalink Submitted by Alan - IRA critic on Thu, 2013-05-02 18:31
You are correct, there is no benefit for separating IRA accounts based on whether contributions are deductible or non deductible. Form 8606 treats the IRAs as combined regardless of the number.