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rmartin5160
New Member

Why do i not qualify for IRA deductions if i contribute to a Roth?

 
1 Best answer

Accepted Solutions
MaryK1
Level 9

Why do i not qualify for IRA deductions if i contribute to a Roth?

Tax deductions are only available for traditional IRAs, never a ROTH IRA.

ROTH IRAs are different than a traditional IRA (which is deductible).  With a ROTH IRA, you are not taxed on the money (the amount or the interest) when you take it out after you retire so you do NOT pay the tax on the money later.  With a traditional IRA, you get the tax break now but you have to pay the tax on the money later.  (Pay now or pay later)

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1 Reply
MaryK1
Level 9

Why do i not qualify for IRA deductions if i contribute to a Roth?

Tax deductions are only available for traditional IRAs, never a ROTH IRA.

ROTH IRAs are different than a traditional IRA (which is deductible).  With a ROTH IRA, you are not taxed on the money (the amount or the interest) when you take it out after you retire so you do NOT pay the tax on the money later.  With a traditional IRA, you get the tax break now but you have to pay the tax on the money later.  (Pay now or pay later)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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