What does it mean when it says Did you contribute to a qualified retirement plan in 2019?

dhamad18 — Sat, 25 Jan 2020 03:22:17 GMT

And how do i know if i have a traditional or roth ira

Re: What does it mean when it says Did you contribute to a qualified retirement plan in 2019?

KurtL1 — Sat, 25 Jan 2020 04:08:39 GMT

A qualified retirement plan is an investment plan offered by an employer that qualifies for tax breaks under the Internal Revenue Service (IRS). The plan will meet the requirement of a qualified retirement plan if the contributions are tax-deductible. An example would be a 401(k).

An individual retirement account (IRA) is not offered (with the exception of SEP IRAs and SIMPLE IRAs) by an employer.

When you make a contribution to a Traditional IRA you are making the pretax contribution. That means you are allowed to take a tax deduction for the contribution and the amount reduces the income taxed on your return. It is referred to as a tax deferred investment account.

When you make a contribution to a Roth IRA you are making an after-tax contribution. The contribution is not tax deductible and does not lower your income taxed on your return.

Most financial institutions will designate in the account name if it is a Traditional IRA or a Roth IRA.

topic What does it mean when it says Did you contribute to a qualified retirement plan in 2019? in Retirement tax questions

What does it mean when it says Did you contribute to a qualified retirement plan in 2019?

Re: What does it mean when it says Did you contribute to a qualified retirement plan in 2019?