7000 put away for ira

[yushuying]

will it lower my tax bracket

[SweetieJean]

Yes, if it's a Traditional IRA, and you are otherwise eligible.  You must have at least $7,000 in earned income, among other requirements.

[DanaB27]

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.