If I open a IRA and put the max amount is the money I put in the IRA tax deductible. Meaning is the money now not included in my total tax owed for the year.

Question

AI accountant’s answer:

Yes, if you contribute to a traditional IRA, your contributions may be tax-deductible. The maximum amount you can contribute for 2023 is $6,000, or $7,000 if you're age 50 or older. This means you can deduct that amount from your taxable income for the year, potentially reducing your tax bill. However, the deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Remember, while you may get a tax break now, you'll have to pay taxes on the money when you withdraw it in retirement. This is different from a Roth IRA, where you contribute post-tax dollars, but withdrawals in retirement are tax-free.

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