Solved
IRA
To. which type of IRA can a contribution be made to reduce annual income, a regular IRA, or a Roth IRA?
Thanks,
DF
Cindy4 12Answer
Employee Tax Expert
September 27, 2023
Hi @bi0hm !
You would contribute to a traditional IRA to reduce your taxable income now. This defers tax to when you take the distributions later in life, when you are theoretically older and making less money, so you may be in a lower tax bracket.
Roth IRAs are not tax deductible, but the distributions are not taxable as long as you meet the requirements.
Here are a resource regarding IRAs:
Hope this helps!
Cindy
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