does contributing to an ira reduce taxes
Because your contributions to a traditional IRA are tax deductible, they reduce the amount of taxable income for the year in which youâre contributing. Therefore, you can simply designate that your contributions, made prior to April 15th or your filing date, be attributed to the previous year.here is, however, one thing you can still do (until you file your taxes) that can significantly reduce the amount of taxes you owe for last year: contribute to a traditional IRA. Iâve done this in years past with great success. The traditional IRA is what got me started with retirement savings.