A couple of years ago, I made what I thought was a then tax deductible $5000 contribution to a traditional IRA. Come to find out it wasn't deductible, so now the IRS wants the tax associated with the income. I can suck that up, but now I have $5000 that I thought was tax deductible that wasn't sitting in a traditional IRA account. Can I do anything (without penalty) to do something more constructive with this money? Like take it out for personal use before I retire? Or is it pretty much stuck in there until I can withdraw it at the qualifying age penalty free? I understand that it counts as non-taxable basis when I start making withdrawals, but that's a lot of extra bookkeeping I'll have to do to remember that in over 10 years.