topic IRA in Deductions & credits

IRA

devilsgarden1949 — Fri, 03 Jul 2020 22:51:48 GMT

Dear Turbo,

I am potentially contributing $7000.0 to a Roth IRA but I do not see any change in the amount of my refund or amount owed when I enter this figure in TurboTax.

System say I still owe $715.00

Please explain.

Re: IRA

VolvoGirl — Fri, 03 Jul 2020 22:57:33 GMT

Right. You do not get a deduction for a ROTH IRA only for a Traditional IRA contribution.

ROTH contributions do not give you a deduction now. You pay tax on you total income now but when you take a ROTH Distribution it will come out tax free and the earnings will be tax free too. So it grows tax free.

Re: IRA

VolvoGirl — Fri, 03 Jul 2020 23:07:03 GMT

Just came across this FAQ on ROTH vs Traditional IRA

https://ttlc.intuit.com/community/retirement/help/what-s-the-difference-between-a-traditional-ira-and-a-roth/00/25671