If I’m not eligible for either a Roth IRA or a tax deduction in a traditional IRA, why would I want to invest in a nondeductible traditional IRA?

You likely would want to make the maximum allowable investments to the TSP first, since you would gain the advantage of the tax deduction there if investing in a traditional balance, and would have Roth-style investing available to you as well.

If you invest the maximum in the TSP and still have money to invest, investing in a nondeductible traditional IRA would provide you with the advantage of the tax-deferred growth in the earnings. 

2020 Digital Almanac

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