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Level 1
July 3, 2020
Question

IRA

  • July 3, 2020
  • 2 replies
  • 5 views

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.

 

    2 replies

    VolvoGirl
    Level 15
    July 3, 2020

    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.

    VolvoGirl
    Level 15
    July 3, 2020