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avo
Level 4

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

we want to contribute $500 to the traditional IRA to help bring the tax owed down. i input the contribution number into turbotax. but what do i have to do next? do i go to a bank or somewhere to open an IRA account? have to do it by apr 17? then report it to IRS? how does IRS know when i open my account? i'm not sure about next steps. thanks.

1 Best answer

Accepted Solutions
Level 12

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

You will need to go to a financial institution such as a bank, brokerage firm, or mutual fund company such as Vanguard or Fidelity and open and fund an IRA account by April 17, 2018.

You report the transaction to the IRS by entering your contribution into TurboTax and need not otherwise report the account or document it until such time as the IRS asks for it.


3 Replies
Level 12

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

You will need to go to a financial institution such as a bank, brokerage firm, or mutual fund company such as Vanguard or Fidelity and open and fund an IRA account by April 17, 2018.

You report the transaction to the IRS by entering your contribution into TurboTax and need not otherwise report the account or document it until such time as the IRS asks for it.


avo
Level 4

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

thanks for the advice.
Level 12

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

Your welcome and thanks for choosing TurboTax!