If I put $5,000.00 into an IRA this year, about how much could I expect to save on my taxes assuming my income remains stagnant?

joycefayerose · ‎June 4, 2019

macuser_22 · ‎June 4, 2019

Depends. A Roth IRA is not deductible. A Traditional IRA can be deductible if your income allows it. How much to would save depend on your income and your margional tax bracket. If you are in the 20% tax bracket then a $5,000 deductions would result in about $1,000 tax reduction. ($5,000 x .20).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

macuser_22 · ‎June 4, 2019

Depends. A Roth IRA is not deductible. A Traditional IRA can be deductible if your income allows it. How much to would save depend on your income and your margional tax bracket. If you are in the 20% tax bracket then a $5,000 deductions would result in about $1,000 tax reduction. ($5,000 x .20).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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If I put $5,000.00 into an IRA this year, about how much could I expect to save on my taxes assuming my income remains stagnant?