Category: Tax Questions
Traditional IRA Deduction
A traditional IRA is a way to save for retirement that gives you tax advantages.
- Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances, and
- Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed
Contributions that are not deductible as IRA contributions are:
- Roth IRA contributions
- Rollover contributions
- Nondeductible contributions due to the active participation in an employer sponsored pension plan
- Elective deferrals to a 401(k), 403(b) plan, Section 457 plan, or federal thrift savings plan
- IRA trustee fees billed separately and paid for with funds outside of the IRA. (These fees are deducted as itemized deductions on Schedule A, Form 1040, subject to the 2% AGI limitation.)
- Repayments of qualified reservist distributions.
Last Updated: 4/4/2015