Open an IRA Account to lower my taxes

[rrobert0ne]

I have a IRA - Indexed Annuity account with Athene. Does it fall in that category of IRA accounts that will lower my taxes if I invest on it?

[Marketstar · Accepted solution]

You actually have to make an out of pocket contribution to an IRA to get a deduction or credit, and you have the following two IRA choices:

You may be able to increase your refund (or decrease taxes owed) by purchasing a Traditional IRA, and you have until April 18, 2017 to do so.

Although the Roth IRA is not tax deductible as is the Traditional IRA, both may qualify you for the Saver's Credit, which may also increase your refund.

See What Is the Saver's Credit?

For 2016, you can contribute up to $5,500 of your earned income ($6,500 if over 50)

To report a Roth or Traditional IRA in TurboTax:

• Type in ira contributions in the search box, top right of your screen, then click the magnifying glass

• Click the jump to ira contributions link in the search results.

• Follow the onscreen instructions to enter