Apr 14

Question by Chris R: How does a Roth IRA get reported on my taxes?
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.


Best answer:

Answer by jseah114
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.

Give your answer to this question below!

2 comments so far...

  • bostonianinmo Said on April 14th, 2011 at 7:17 pm:

    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 April 14th, 2011 at 7:18 pm:

    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.

leave a reply

Powered by Yahoo! Answers

Page Ranking Tool