I am not covered by a retirement plan at work. Can I take the $7,000 deduction if I contribute to a Roth IRA, or only if I contribute to a traditional IRA?

Margo12 · ‎March 24, 2021

ThomasM125 · ‎March 24, 2021

Only the contribution to a traditional IRA may be deductible on your tax return.

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VolvoGirl · ‎March 24, 2021

Differences ROTH IRA and Traditional IRA

https://ttlc.intuit.com/community/retirement/help/what-s-the-difference-between-a-traditional-ira-an...

IRA Contributions IRS Pub 590a.

https://www.irs.gov/pub/irs-pdf/p590a.pdf

A Traditional IRA contribution gives you a Deduction now and it is taxed when you take it out. It is all taxed, including the earnings and growth.

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

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I am not covered by a retirement plan at work. Can I take the $7,000 deduction if I contribute to a Roth IRA, or only if I contribute to a traditional IRA?