IRA Rules

Question: Is contribution to a Roth IRA for tax year 2008 tax deductible?

While filing out the tax form I noticed that for explanation for Line 51 (Retirement Savings Contributions Credit (Saver’s Credit) on Form 1040 says “you may be able to take this credit if you or your spouse if filing jointly, make a) contributions to a traditional or Roth IRA

This is the part where I got confused. I thought that Roth IRA is not tax deductible but under letter “a” it says “traditional” OR Roth, which makes me wonder if the rule changed for tax year 2008 (one of Obama’s plans)?

Can someone explain this to me? Thanks!

Answer: The Roth is not tax deductible.

The Retirement Savings Contributions Credit (Saver’s Credit) is a separate credit, if you qualify, that is not connected to the deductiblity of your IRA, 401(k), 403(b), etc.

Roth Segregation Part 1: IRA Tax Law

Related posts

• Roth Ira Rules Tax
• To Ira Rules
• Tax Rules For Roth Ira
• Tax Rules For Ira Contributions
• Rules Of Ira
• Rules For Ira
• Roth Ira Withdrawal