When it comes to saving for retirement, many people turns to IRAs. An individual retirement account, or IRA, is a type of investment account that offers tax benefits to help you save for retirement. One of the most common questions people have about IRAs is whether traditional IRA contributions are tax-deductible.
The answer to this question is yes, traditional IRA contributions are tax-deductible. This means that you can deduct the amount you contribute to your traditional IRA from your taxable income. For example, if you contribute $5,000 to your traditional IRA, you can reduce your taxable income by $5,000. This can help to lower your overall tax bill.
One thing to keep in mind is that there are income limits for deducting traditional IRA contributions. For 2019, the deduction is only available for taxpayers with a modified adjusted gross income of less than $103,000 (or $193,000 for married couples filing jointly). If your income is above these limits, you may still be able to contribute to a traditional IRA, but the contribution will not be tax-deductible.
If you’re thinking about saving for retirement with an IRA, it’s important to understand the tax implications. Be sure to talk to a financial advisor or tax professional to get the most accurate information for your situation.
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