Hi Blue 88:

"Should I just pick a tax efficient index fund instead and save myself the accounting hassle later on when we may not even get the tax benefit? "

You are asking a difficult question.  In this earlier post I thought you received  good replies:

http://socialize.morningstar.com/NewSocialize/forums/thread/2487420.aspx

I am not a fan of non-deductible IRAs.  The 8 pages of instructions for  filing  IRS Form 8606 contradict my philosophy to "keep investing simple":

http://www.irs.gov/pub/irs-pdf/i8606.pdf

Diehard Murray Coleman, now with  IndexUniverse, wrote this  article comparing tax-managed funds and deductible IRAs:

http://www.marketwatch.com/news/story/tax-managed-funds-outperform-non-deductible-iras/story.aspx?guid=%7BC883084B-90B6-41E2-8ECC-56EAAD3D2EF9%7D

This  Diehard thread which generally favors non-deductible IRAs.

http://www.diehards.org/forum/viewtopic.php?t=1834&mrr=1176824149

If you decide to go the taxable route, be sure that you only consider funds that are tax-efficient.  Total Stock Market Index Fund and the FTSE All-World Ex US are good choices.

Best wishes.
Taylor