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New Member
posted Jul 3, 2020 3:51:48 PM

IRA

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.

 

0 2 328
2 Replies
Level 15
Jul 3, 2020 3:57:33 PM

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.

Level 15
Jul 3, 2020 4:07:03 PM

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-and-a-roth/00/25671