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Level 1

If I open roth ira will I get 2016 tax savings

is Trad IRA better ?
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Employee Tax Expert

If I open roth ira will I get 2016 tax savings

You will not get any tax savings if you contribute to a ROTH IRA this year-you get the tax savings when you take distributions after you retire.  If you are able to contribute to a traditional IRA, you will get a income deduction in 2016 which may reduce your taxable income

3 Replies
Employee Tax Expert

If I open roth ira will I get 2016 tax savings

You will not get any tax savings if you contribute to a ROTH IRA this year-you get the tax savings when you take distributions after you retire.  If you are able to contribute to a traditional IRA, you will get a income deduction in 2016 which may reduce your taxable income

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Alumni

If I open roth ira will I get 2016 tax savings

ROTH IRA contributions are not deductible and provide no current tax savings. Only deductible contributions to a Traditional IRA provide any current tax benefit.
Level 20

If I open roth ira will I get 2016 tax savings

A Roth IRA contribution might qualify you for a Retirement Savings Contributions Credit:

https://www.irs.gov/publications/p590a/ch03.html