2007-03-14 07:18:55 · 14 answers · asked by NY 1 in Business & Finance ➔ Taxes ➔ United States
Contributing to a Tradional IRA will provide for some tax relief. as you can claim an adjustment to your income for the contribution
Contributing to a Roth IRA provides no immediate relief as you can not claim an adjustment to income. and the Contributions are tax free at the time of withdraw
Publication 590
http://www.irs.gov/publications/p590/index.html
2007-03-14 07:34:20 · answer #1 · answered by Anonymous · 2⤊ 1⤋
There is no such thing as either a traditional or IRA. An IRA deduction applies to a traditional IRA compared to a Roth IRA. There is no split between traditional and IRA. A normal IRA is a traditional IRA.
And yes, you can deduct your IRA contribution for 2006, but only if you made the contribution to the IRA by April 15th. You do not get an extension to contribute to an IRA, it must be paid by the normal filing date.
2007-03-14 09:26:01 · answer #2 · answered by bold4bs 4 · 0⤊ 1⤋
Yes. If you make your 2006 contribution by April 15. But only contributions to a traditional IRA are tax deductible.
You put post-tax money into a Roth IRA.
2007-03-14 07:24:06 · answer #3 · answered by Lisa A 7 · 3⤊ 0⤋
your last question is not correct. there are two basic types of IRA's. One is "traditional", the other is "Roth".
you can create and deduct up to $4000 (or $5000 if you are as old as me) for 2006 for a "contribution" to a Traditional IRA as long as you make the contribution before 4/15/2007 AND before you file your return. if you already filed, it's too late.
2007-03-14 09:47:51 · answer #4 · answered by Ovrtaxed 4 · 0⤊ 0⤋
relies upon- the area the place you opened (or might have opened) your IRA might deliver you a 5498 for 2008 exhibiting how plenty your contribution is. in case you probably did no longer do it in time, they are not going to deliver you one- and a replica to the IRS. So whilst they get to reviewing your report next year, they are going to be conscious which you haven't any longer have been given a 5498 and particular ask for data of the contributions. you need to amend your return and take off the contributions you probably did no longer make. And FYI- the requirement for the contribution to count quantity is that it might desire to be made via the two April fifteenth, or the day you filed your tax return.
2016-10-18 09:15:17 · answer #5 · answered by ? 4 · 0⤊ 0⤋
You can. Be sure to specify it's for 2006. And only traditional IRA's, not Roth's, have any effect on your taxes for the year when you deposit money into it.
2007-03-14 07:25:37 · answer #6 · answered by Judy 7 · 1⤊ 1⤋
Yes, you can apply it. But only if it's a Traditional. You don't apply a Roth. A Roth means you're putting in taxed money. A traditional is pre-tax money. Here's a site that might help.
2007-03-14 07:26:10 · answer #7 · answered by J M 4 · 2⤊ 0⤋
Traditional IRA!
I did it and got so much money back to me from tax return. Did it in my bank, put $3000.
Now I do this every year.
2007-03-14 07:24:17 · answer #8 · answered by Bella 4 · 2⤊ 0⤋
Yes you can, be sure to specify you want it to count towards last year when you open it.
It's only meaningful for Traditional or simple IRA's as these are considered "pretax."
A Roth IRA would not make any difference, as they are "aftertax.", their benefit is that they grow tax free.
2007-03-14 07:24:12 · answer #9 · answered by Vegan 7 · 3⤊ 0⤋
Yes.
It must be a traditional IRA and you must qualify for the deduction.
If you are covered by a retirement plan at work, the income phase-out for the deduction is pretty low ($50k).
2007-03-14 07:23:51 · answer #10 · answered by Wayne Z 7 · 4⤊ 0⤋