A taxpayer's spouse will not be considered to be an active participant merely because his or her spouse is covered by an employer-sponsored retirement plan for any part of a plan year. A separate phaseout limit applies to individuals who are not active participants but whose spouses are active participants. Although the contribution is not deducted from taxable income, the earnings on the contribution are not taxed until they are withdrawn. This often-overlooked opportunity can provide significant benefits if used consistently for several years. Nondeductible Roth IRA .
Income accumulates tax-free in the account.
Qualified distributions from the account are not included in income. The maximum contribution is coordinated with the deductible IRA and is limited annually to the maximum IRA contribution allowed for that individual. Contributions can be made even if the individual is beyond age 70 . No distributions are required when the individual attains age 70 . Distributions are required only upon death.