If I obtain a ira does the amount I purchase deduct from what I owe at a rate of 1 to 1

jjwilso5657 · ‎June 6, 2019

macuser_22 · ‎June 6, 2019

No. A deductible Traditional IRA reduces your taxable income, not your tax. You tax savings, if any, depend on your margional tax rate. If you are in the 20% tax bracket, for example, a $1,000 deduction could save $200 in taxes.

**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 6, 2019

No. A deductible Traditional IRA reduces your taxable income, not your tax. You tax savings, if any, depend on your margional tax rate. If you are in the 20% tax bracket, for example, a $1,000 deduction could save $200 in taxes.

**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.**

If I obtain a ira does the amount I purchase deduct from what I owe at a rate of 1 to 1