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dchew4
Returning Member

IRAs and tax breaks

Hello,

 

I do not have an employer retirement plan (401k, etc.) of any sort and did not contribute to an IRA for 2021. As I'm doing my taxes, turbo tax has indicated I can receive a tax savings of up to $1,320 if I contribute a maximum of $6,000 to a traditional IRA (not Roth IRAs) by April 18th. However, the subsequent pages indicate that I can contribute to either an IRA or a Roth and those contributions will count toward my 2021 taxes. 

 

I'm confused if the contribution needs to be made to a traditional IRA only. Or can I contribute to a Roth and still receive the up to $1,320 tax savings? 

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1 Reply

IRAs and tax breaks

You only get a tax savings now by making a deductible contribution to a TRADITIONAL IRA.  ROTH IRAs do not provide a tax savings when you make contributions.

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