Question

Self employed IRA contributions

Forum|Forum|4 years ago
October 27, 2021
2 replies
0 views

Can my monthly IRA contributions reduce my taxes - I no longer have a SEP account and just send that post tax money into a Roth IRA Edward Jones account

VolvoGirl

No. A ROTH IRA is not deductible. It goes in after tax and comes out tax free when you take a withdrawal.

BarbL

As Volvogirl said, Roth contributions are made with post-tax dollars, so they are not deductible. The benefit is that the contributions and earnings on them are tax-free when you take a withdrawal.

You may be eligible to take the Saver's Credit for those Roth contributions, if you qualify. There are income limitations which disqualify many taxpayers from this credit, but definitely check to see if you qualify. More information and the income limits can be found here: Saver's Credit

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