What are contributions to a Traditional IRA called when they cannot be deducted from adjusted gross income?

Contributions to a Traditional IRA that cannot be deducted from adjusted gross income are referred to as nondeductible traditional IRA contributions. This scenario typically arises when a taxpayer's income exceeds certain limits, making them ineligible for a deduction based on their modified adjusted gross income (MAGI).

When these contributions are nondeductible, the account holder must keep track of them because, while they will not reduce taxable income in the year they are made, they will not be taxed again when withdrawn in retirement, as they have already been subjected to tax. This ensures that the contributions are treated fairly in terms of taxation over time.

The other choices reference types of contributions that either allow for a deduction based on income (deductible contributions), are not a recognized category (qualified contributions), or suggest partial deductions, which implies a different treatment than nonscheduled deductions that arise from exceeding certain income limits. Thus, the clear distinction of nondeductible contributions accurately identifies the nature of the contributions made under the circumstances described.