Is there a way to find out at what rate your non-deductible contributions to an Traditional IRA will be taxed at upon distribution? My assumption is that 100% of my contributions will be non-deductible due to income restrictions and that they will have to be filed on the FORM 8606. Also, I'm assuming that the distribution will occur after I'm 60 without early withdrawal penalty.

In general, I'd like to have an idea as to the benefits of contributing non-tax deductible funds to an IRA vs. just contributing to a brokerage account, but it is tough to quantify without knowing the back-end tax implications of the Traditional IRA.

Thanks again for your assistance. I'm very pleased to have found this forum.

The earnings will be 100% taxed. Are you asking about future tax rates (impossible to predict, of course)?

I don't think that non-deductible contributions are taxed upon withdrawal; only the earnings are taxed. Nondeductible contributions should have already been taxed once (when originally earned).

The taxpayer has basis in the non-deductible contributions, which are treated as investments in the contract. Notice 87-16, Sec. III provides the formula for calculating the taxable and excludible portions of a distribution.