I have been getting a bit confused by the variety of IRA accounts available to me and want to check that my understanding of each is correct, in a general sense (ignore complexities like 5 year rules, etc... and assume I am withdrawing at an age that does not incur penalty):
- Roth IRA: Contributions are with post-tax dollars. Any money I withdraw after an appropriate time is completely tax free. Contributions + interest/gains... the whole thing is tax free at withdrawal
- Traditional IRA: Contributions are with pre-tax dollars. Any money I withdraw at the appropriate time will be subject to income tax. Contributions + interest/gains... the whole thing is taxed as income
- Nondeductible IRA: Contributions are post-tax dollars. At withdrawal I am only taxed on the interest/gains, and not on the contributions. This makes it essentially a similar but worse version of the Roth.
Is this all right?