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2Leos: "I just came across this statement in a Personal Finance Case Study I was reading:

"...IRA contributions are fully tax deductible only if a single person makes less than $35,000 a year..."

Huh? I know IRAs may be tax deferred, but deductible??? Halp! I'd love to be able to deduct my Roth but this just doesn't sound right. Any comments?"

Contributions to a Roth IRA are neve deductible. Contributions to a traditional IRA (the only kind that existed before Roth IRAs were created) may be tax deductible. Your case study is discussing a traditonal IRA (although I do not vouch for its numbers, they seem low and seem to ignore participation in a qualified plan), and depending upon when it was last revised, those may have been the only IRAs available at the time it was written.

Regards, JAFO

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