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|Subject: Re: IRA deposits: Educate Please||Date: 4/19/1999 8:20 AM|
|Author: jocave||Number: 10025 of 76398|
when you recieve your salary already taxed by the employer, Is there any advantage or disadvantage to create an IRA?
Not sure exactly what you're asking here. There are two types of IRA's: traditional and Roth.
If you contribute to a traditional IRA, all or part of your contribution may be deductible depending on your income. Assuming you are eligible to make a deductable contribution, you will "recover" the taxes witheld when you file. Money in a traditional IRA grows tax-free, but is taxed upon withdrawl.
If you contribute to a Roth, you are contributing after-tax money (i.e. no deduction), but withdrawls aren't taxed.
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