What type IRA must I sign up for to get a $5500 tax break.

mybuddyaddison — Sat, 01 Jun 2019 04:38:55 GMT

Will the $5500 come off the top of the federal taxes I owe?

A traditional IRA can still be opened and funded for 2016...

KenH1 — Sat, 01 Jun 2019 04:38:57 GMT

A traditional IRA can still be opened and funded for 2016, and potentially increase your refund.

You can always contribute to a traditional IRA, regardless of your income or coverage by an employer plan.

The deductibility depends on your income, filing status, and employer coverage.

These links provide the most recent income limits for deducting IRAs

IRA deductibility - covered by employer plan (the "retirement plan" box on your W2 is checked)

IRA deductibility - NOT covered by employer plan (the "retirement plan" box on your W2 is NOT checked)

If your traditional IRA is deductible, it reduces your taxable income (as opposed to a dollar for dollar credit).

Hope this helps.