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Instead of contributing the nondeductible amount to a Traditional IRA, where earnings grow tax-deferred, you can contribute the amount to a Roth IRA where earnings grow tax-free.
These increased limits apply for both deductible and nondeductible contributions to traditional IRAs.
Prior to 1998, individuals who wanted to fund an IRA could make either a deductible or nondeductible contribution to a Traditional IRA.
However, to the extent you made nondeductible contributions to a retirement account, those amounts will not be protected.
Over the years, you made both deductible and nondeductible contributions to your Traditional IRA.
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