It depends, on where you are in the tax bracket. For example, if you have a taxable income of 87,000 as a single filer (at the bottom edge of the 24% tax bracket) before the traditional IRA contribution then the $7,000 contribution can put you in the lower tax bracket. Please see What are the federal tax rates for 2021? for details.
Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
