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| *Ostroff, Fair and Company>>>United States Taxes |
Do I get a tax credit if I contribute to my Rotha IRA? |
Do I get a tax credit if I contribute to my Rotha IRA? No you get the benefit of tax free withdraws from the Roth IRA when you retireNo, contributions to a Roth are not deductible. However, there is NO tax levied on the distributions if you withdraw after age 59 1/2. That is the benefit of a Roth IRA. No. Roth IRA contributions are not deductible. But they grow tax free, not tax deferred like traditional IRAs. When it comes time to make withdrawls after age 59 1/2, there is no tax on the withdrawl. Bostonia above gave the correct answer. I can't improve on that and I'm a CPA. But I will say that, except for people who may be within five years fo retiring, generally over the life of the investment, the ROTH ends up being a better deal, even without the initial deduction. (And BTW, its a deduction, not a credit.) Good luck on your investing decisions and God Bless. You can not deduct a Roth IRA contribution on your current taxes. The contributions, however, earn interest tax-free with no taxation when the funds are withdrawn (unlike the traditional IRA's). There are some tax credits for savers in lower income tax brackets. It's all at IRS.gov. Also, you can file your own taxes for FREE through the IRS.gov links if you meet certain income and age limits. |
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