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czhao23
New Member

We made a contribution of $2000 each (my wife and I) to our Roth IRA for 2016. But the Turbo Tax shows that IRA contribution are not qualified for the tax deduction.

Is the Roth IRA contribution tax-deductable?
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dmertz
Level 15

We made a contribution of $2000 each (my wife and I) to our Roth IRA for 2016. But the Turbo Tax shows that IRA contribution are not qualified for the tax deduction.

Roth IRA contributions are never deductible.  The benefit of a Roth IRA is that earnings inside the Roth IRA are eventually tax-free growth.  (Which, for most people, is a greater benefit than a short term benefit of a tax deduction only to have all amounts distributed later be subject to tax.)

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3 Replies
dmertz
Level 15

We made a contribution of $2000 each (my wife and I) to our Roth IRA for 2016. But the Turbo Tax shows that IRA contribution are not qualified for the tax deduction.

Roth IRA contributions are never deductible.  The benefit of a Roth IRA is that earnings inside the Roth IRA are eventually tax-free growth.  (Which, for most people, is a greater benefit than a short term benefit of a tax deduction only to have all amounts distributed later be subject to tax.)

VolvoGirl
Level 15

We made a contribution of $2000 each (my wife and I) to our Roth IRA for 2016. But the Turbo Tax shows that IRA contribution are not qualified for the tax deduction.

ROTH IRA or 401k is never deductible.  Only contributions to a Traditional IRA can be deducted and even then you have to qualify for the deduction.  And I want to check that you said  "our Roth IRA..."    Hope you meant separate IRA accounts.   You can not have a joint IRA.  You each need your own IRA account.
dmertz
Level 15

We made a contribution of $2000 each (my wife and I) to our Roth IRA for 2016. But the Turbo Tax shows that IRA contribution are not qualified for the tax deduction.

Good point.  The contribution is the contribution of the individual to whose account the contribution is made.
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