topic Traditional IRA Contribution in Get your taxes done using TurboTax

Traditional IRA Contribution

Sha CLE 216 — Wed, 11 Feb 2026 09:15:50 GMT

How much of a tax deduction you receive on your 2023 income tax return if you max out contribution $8K before April 15?

Re: Traditional IRA Contribution

MinhT1 — Wed, 03 Apr 2024 19:11:22 GMT

The maximum contribution in 2024 to a Traditional IRA is $7,000 (plus a catch-up contribution of $1,000 if aged 50 or over).

The tax savings depends on your marginal rate.

See this IRS document.

Re: Traditional IRA Contribution

Sha CLE 216 — Wed, 03 Apr 2024 19:18:32 GMT

So, I am over 50, it would not be a flat $8K off my Gross Income amount?

Re: Traditional IRA Contribution

VolvoGirl — Wed, 03 Apr 2024 19:21:50 GMT

Yes it reduces your gross income. It doesn't directly reduce the tax. It reduces the tax by the tax rate you are in. Like if you are in the 20% tax bracket it will reduce the tax by 20% or $1,600.

Re: Traditional IRA Contribution

ThomasM125 — Wed, 03 Apr 2024 19:29:01 GMT

You can use this tax bracket calculator to estimate your marginal federal tax rate: Federal marginal tax calculator

Multiply that by your allowable traditional IRA contribution to estimate the affect it will have on lowering your income tax.