IRA

[devilsgarden1949]

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.

[VolvoGirl]

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]

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-an...