Please let me know if I'm correct here...
I am self-employed, running a small shop out of my garage. I complete my taxes annually like anyone else with TurboTax.
As I understand it, a traditional IRA is tax-free upon investment, but you're hit when you withdraw at retirement.
You take advantage of the tax-free incentive by deducting it during your annual tax return; you write it off annually. Vis a Vis, you can currently write off up to $5500 annually.
On a Roth IRA, you can't write that off. Your investments are, as such, made with post-tax income.
The incentive is, obviously, that you are not hit with taxes upon retirement.
Correct?
Submitted January 10, 2017 at 03:41PM by headmustard http://ift.tt/2iChiRW
