Permalink Submitted by Alan - IRA critic on Tue, 2014-12-02 15:41
Roth contributions come from already taxed income. Therefore, your taxes are the same whether you contribute to a Roth IRA or just spent the money. The benefit of a Roth IRA is that all earnings in the Roth will eventually be tax free, so your benefit comes in retirement rather than up front. If you wanted a deduction for your contribution up front you would contribute to a traditional IRA as long as your income was not too high to deduct the contribution.
Permalink Submitted by Alan - IRA critic on Tue, 2014-12-02 15:41
Roth contributions come from already taxed income. Therefore, your taxes are the same whether you contribute to a Roth IRA or just spent the money. The benefit of a Roth IRA is that all earnings in the Roth will eventually be tax free, so your benefit comes in retirement rather than up front. If you wanted a deduction for your contribution up front you would contribute to a traditional IRA as long as your income was not too high to deduct the contribution.