Message Font: Serif | Sans-Serif
No. of Recommendations: 0
isn't that like double taxed?

No, because its a tax *deduction*. So you may have been taxed on it, but you get that back when you file. So, net, you weren't taxed to begin with.

Now, depending on your income & other facts, you may or may not be able to actually deduct that contribution. So you should find that out before you make a contribution (see IRS Pub 590 - everything you ever wanted to know about IRAs). If you can't, then, yes, it usually doesn't make much sense.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.