I have finished my forms, but I would like to know how much of a tax break I would receive if I open an IRA.

[wrencat]

Married filing jointly, both 61 yo, want to put 5000.00 in a Roth

[AmyT · Accepted solution]

Contributions to Roth IRAs are not deductible and will not generate any current tax benefits.

The advantages of opening Roth IRAs is that distributions are not taxable if you are at least 59 1/2 when you take out the funds (which means that the account produces tax-fess earnings) and that there are never any required distributions.

If you wish to generate a current tax deduction by contributing to an IRA, you will need to go the traditional IRA route.

To input IRA contributions (or to see how a contribution will effect your taxes):

• Click on Search at the top of your screen
• Enter "Itemized deductions" in the search box (the IRA deduction is not an itemized deduction, but this will get you to the right place)
• The first link that comes up should by Jump to itemized deductions - click on this link
• Scroll down until you come to a box that will allow you Skip to see all tax breaks - click on this
• Scroll down to Retirement and Investments - click on Show more
• Click on Start next to Traditional and Roth IRA Contributions

Hint:  If you do make a contribution, make sure that your financial institution is aware that the IRA funds you deposited are to be applied to the 2016 tax year.