Definitions for "nondeductible"
not allowable as a tax deduction; as, political contributions are nondeductible. Opposite of deductible.
An item or amount that cannot be deducted for tax purposes. In health insurance, nondeductible describes the type of coverage that has no deductible amount; the insurance pays benefits starting with the first dollar of covered expense.
An individual's contributions to a traditional IRA are tax deductible if he or she is not an active participant in an employer's retirement plan. An active participant still may deduct contributions to a traditional IRA depending upon income and filing status. Contributions to a Roth IRA are not deductible.