Sep 13

I contributed about $600 to my Roth IRA in 2006. I don’t get taxed on that do I? I heard I get a refund for 15% of that or something. Can someone please clear that up for me. Also, if it matters, I’m self-employed.

Thanks!


3 comments so far...

  • jseah114 Said on September 13th, 2010 at 7:08 am:

    Your contribution to a Roth IRA is with after tax dollars. This means that you do not get a deduction for the amount contributed. However, the money your contribution earns is tax free (not subject to tax) if you take the money out when you reach retirement age.

  • bostonianinmo Said on September 13th, 2010 at 7:59 am:

    Roth IRA deposits are fully taxed — you don’t get a deduction for it — but they accumulate tax free. You don’t need to record this on your taxes.

  • Take Responsibility Said on September 13th, 2010 at 8:50 am:

    You do not get a deduction for a contribution to your Roth IRA. However, there is an often overlooked tax credit you may be eligible for, depending on your filing status, income level, and whether or not you received any retirement distributions during the year.

    Check out form 8880, Credit for Qualified Retirement Savings Contributions. That is the link I put below.

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