Solved: How much does contributing to an IRA help my return exactly? Is there some kind of table I can look at to see if it's worth it to me? It is not very clear to me how much
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How much does contributing to an IRA help my return exactly? Is there some kind of table I can look at to see if it's worth it to me? It is not very clear to me how much

how much financial benefit we would receive on the refund compared to how much we put in an IRA? Is there a table of some sort to look at?
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Level 15

How much does contributing to an IRA help my return exactly? Is there some kind of table I can look at to see if it's worth it to me? It is not very clear to me how much

If you know your marginal tax bracket.....its at ~ your tax rate.

i.e. if you are being taxed at 15%, an you contribute 2000 to a deductible IRA , it may get you an additional 0.15 x 2000 = $300 (if you are eligible to make a deductible contribution in the first place)

So spending $2000, might get you 300 more back.  but if you are taxed at 10%, then only $200 gets back to you.  IF you have zero taxable income, then no more comes back to you...... 

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Level 15

How much does contributing to an IRA help my return exactly? Is there some kind of table I can look at to see if it's worth it to me? It is not very clear to me how much

If you know your marginal tax bracket.....its at ~ your tax rate.

i.e. if you are being taxed at 15%, an you contribute 2000 to a deductible IRA , it may get you an additional 0.15 x 2000 = $300 (if you are eligible to make a deductible contribution in the first place)

So spending $2000, might get you 300 more back.  but if you are taxed at 10%, then only $200 gets back to you.  IF you have zero taxable income, then no more comes back to you...... 

View solution in original post

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