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Tom Meaglia, ChFC®, AEP®,


Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120




May/June 2023

Traditional But Not Deductible

When investors examine their retirement investment options, they typically pay a great deal of attention to whether their contributions are deductible or not. There are a wide variety of investment accounts, from 401(k) and 403(b) plans, that offer this benefit regardless of income. For high net worth individuals, limits to how much they can contribute to these plans may leave them looking for another place to put additional monies.

The Roth IRA, which doesn’t offer deductible contributions but does feature tax-free qualified distributions, is one place to look. However, high net worth individuals often get shut out of investing in a Roth IRA due to income restrictions.

So, where can these retirement investors go if they max out on other traditional qualified accounts and don’t qualify for the Roth? A traditional, nondeductible IRA still offers potential tax-deferred gains. Talk to your financial professional to learn more.

IRA Rules
So why bother at all with a traditional IRA if you can’t defer taxes on contributions? Potential tax-deferred growth of your investments is the four-word answer. Additionally, the percentage of your contributions to investment gain also won’t be taxed when you begin distributions.

There are other alternatives, including taxable investments and potentially qualifying for the Roth in some years by shifting income, so talk to your financial professional to learn if this approach is right for you.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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