Back to Top IRAs. Individual retirement accounts also offer tax advantages. Contributions to a traditional IRA may be tax deductible and account earnings accumulate tax deferred. In contrast, your contributions to a Roth IRA won't be tax deductible. The total contribution can't exceed your joint compensation.
Several exceptions apply.
Back to Top Roth IRA conversions. While taxes would be payable in the year of the conversion, withdrawals from the Roth IRA would be tax free, assuming qualifying requirements were met. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is printed with the understanding that it does not constitute legal, accounting, or other professional service. The strategies discussed in this guide do not consider the details of your specific tax situation.