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Retirement tax questions
A Roth IRA contribution might qualify for the Retirement Savings Contributions Credit, a tax credit that can reduce your income tax liability, the same as would a traditional IRA contribution. But as VolvoGirl said, other then the possible tax credit I've mentioned there is no immediate tax savings for making a Roth IRA contribution. The main benefits of a Roth IRA contribution is the tax-free growth, provided the holding requirements are met and tax- and penalty-free distributions of your original contributions at any time. For many people the long-term benefit of tax-free growth will be greater than the immediate tax deferral of a deductible traditional IRA contribution.
‎December 21, 2019
4:08 AM
738 Views