is a roth ira contribution reported as income?
at the end of the year when you file taxes or does it increase your agi (aggregate gross income)? i ask because of the earned income tax credit and if it would have any affect on that because you have to make under a certain amount. i was going to make a $5000 roth ira contribution.
so if my agi for the year was 41,000 and i made a contribution to my traditional ira instead of my roth ira, it may lower the agi 41,000 amount?
Nein.Die of fundamental elements of the Roth Irish Republican Army: Contribution not deductible, withdrawal of the rule taxfree after age 59 1/2, including ErträgeWie to traditional Irish Republican Army a contrast – contribution selfkeep, withdrawal taxpayer
A Roth IRA contribution is a nonevent on your taxes. A contribution to a traditional IRA is an adjustment to your total income. (It’s subtracted from Total Income to arrive at Adjusted Gross Income. )
Once you retire, as long as you are over 59. 5 years old, withdrawals from a Roth IRA are not taxable, but withdrawals from a traditional IRA are.