Which of the following accounts allows contributions that are not tax-deductible?

A Roth IRA is an account that allows individuals to make contributions that are not tax-deductible. When you contribute to a Roth IRA, you do so with after-tax dollars, meaning the contributions do not reduce your taxable income for the year. However, the key benefit of a Roth IRA is that qualified withdrawals during retirement are tax-free, which includes both the original contributions and any investment earnings.

This differs from options like a Traditional IRA, where contributions may be deductible, thus reducing taxable income in the year the contribution is made. Employer-funded retirement plans and 401(k) plans typically involve pre-tax contributions that lower your taxable income for the year as well. Consequently, the tax treatment of contributions to a Roth IRA stands out because of the non-deductibility of those contributions, paired with the significant tax-free withdrawal benefit in retirement.