When asked if I wanted to create a Roth IRA for my wife and I to reduce taxes, I said yes, but I actually did it, the reduction shown was not taken out. Why?

posted

Connect with an expert

2 Replies

When asked if I wanted to create a Roth IRA for my wife and I to reduce taxes, I said yes, but I actually did it, the reduction shown was not taken out. Why?

Roth IRA's are not deductible from your income like the original IRA's. The difference is that you are not taxed on the income from a Roth IRA. On the original IRA's you are required to take a minimum distribution each year after you are 70 1/2 years old, and that distribution is all taxable.