search4answers
  • Finance
    Declaring Bankruptcy: The Pros and Cons
  • Finance
    The Pros and Cons of Using a Smartphone as a…
  • Finance
    The Truth About Advance Payday Loans
search4answers
    • Health
      • Why Should You Get A Flu Shot?

        Why Should You Get A Flu Shot?

      • Potential Risks Of Getting A Facelift

        Potential Risks Of Getting A Facelift

      • Recognizing The Symptoms Of Bipolar Disorder

        Recognizing The Symptoms Of Bipolar Disorder

      • Pneumococcal Pneumonia Treatment

        Pneumococcal Pneumonia Treatment

      • Meningitis Symptoms

        Meningitis Symptoms

      • Epileptic Seizures: Myoclonic Seizures

        Epileptic Seizures: Myoclonic Seizures

    • Finance
      • Services To Help You With Tax Relief

        Services To Help You With Tax Relief

      • Student Loan Forgiveness: Are You Eligible?

        Student Loan Forgiveness: Are You Eligible?

      • 8 Steps to Successful Retirement Planning

        8 Steps to Successful Retirement Planning

      • How You Can Cut Your Cable Bill

        How You Can Cut Your Cable Bill

      • How Can You Get Out Of Your Long Term Car…

        How Can You Get Out Of Your Long Term Car…

      • Installment Loans Explained

        Installment Loans Explained

    • Mortgage
      • Are you Eligible for HARP Refinancing

        Are you Eligible for HARP Refinancing

      • What is a Reverse Mortgage and How Does it Work?

        What is a Reverse Mortgage and How Does it Work?

      • Who are the Top Private Equity Companies?

        Who are the Top Private Equity Companies?

      • Home Equity Conversion Mortgage (HECM): Explained

        Home Equity Conversion Mortgage (HECM): Explained

      • What Can you Do to Avoid Mortgage Foreclosure

        What Can you Do to Avoid Mortgage Foreclosure

      • The 4 Best Ways to Spend your Home Equity Loan

        The 4 Best Ways to Spend your Home Equity Loan

    • Auto
      • Do Diesel Cars Still Have a Future in America?

        Do Diesel Cars Still Have a Future in America?

      • Selling Your Car Privately: Pros and Cons

        Selling Your Car Privately: Pros and Cons

      • The 7 Most Expensive Cars in the World

        The 7 Most Expensive Cars in the World

      • Top 8 Facts about the 2017 RAM Trucks

        Top 8 Facts about the 2017 RAM Trucks

      • 5 Previously Expensive Cars You Can Now Buy for Less…

        5 Previously Expensive Cars You Can Now Buy for Less…

      • Look Out for These Problems Before Buying a Used Car

        Look Out for These Problems Before Buying a Used Car

    • Business
      • Internet Provider Review: Mediacom

        Internet Provider Review: Mediacom

      • 5 Formatting Essential Tips For Your Resume

        5 Formatting Essential Tips For Your Resume

      • Expert Secrets For Flea Control

        Expert Secrets For Flea Control

      • All Plumbers Need These 10 Tools

        All Plumbers Need These 10 Tools

      • Stay Focused While Working at Home

        Stay Focused While Working at Home

      • Small Business Internet Providers: 4 Great Options

        Small Business Internet Providers: 4 Great Options

    • Medical
      • How To Best Treat GERD

        How To Best Treat GERD

      • Symptoms Of Diabetic Neuropathy

        Symptoms Of Diabetic Neuropathy

      • Abdominal or Spleen Pain? Relieve Your Symptoms Now!

        Abdominal or Spleen Pain? Relieve Your Symptoms Now!

      • The Types of Breast Cancer

        The Types of Breast Cancer

      • Treatments Hep C

        Treatments Hep C

      • What is Renal Cell Carcinoma Cancer?

        What is Renal Cell Carcinoma Cancer?

    • Tech
      • Dispatch Field Service Ticketing Systems Software

        Dispatch Field Service Ticketing Systems Software

      • What Is Field Service Management?

        What Is Field Service Management?

      • Cloud security managed service

        Cloud security managed service

      • Best HEPA Air Purifiers for Home

        Best HEPA Air Purifiers for Home

      • Find The Best Cell Phone Plan For You

        Find The Best Cell Phone Plan For You

      • Before Online Dating There Was Video Dating

        Before Online Dating There Was Video Dating

    • Travel
      • Which Are The Best Airports To Travel Through?

        Which Are The Best Airports To Travel Through?

      • Helpful Tips to Get a Green Card Through Family Members

        Helpful Tips to Get a Green Card Through Family Members

      • 4 Ways to Securing a Green Card

        4 Ways to Securing a Green Card

      • If You Need to Renew or Replace a Green Card

        If You Need to Renew or Replace a Green Card

      • International Travel Regulations for Green Card Holders

        International Travel Regulations for Green Card Holders

      • Learn How To Maintain Green Card Status

        Learn How To Maintain Green Card Status

      How Do IRA Contributions Affect Your Taxes? Find Out Here

      by Stephanie Donnely

      One key factor that you should always put into consideration whenever you are making investment strategies is how the strategies are going to affect your taxes. There are still lots of factors that are involved and need to be kept in mind, and in all this, your least expectations is to make investments that will demand of you to pay huge amounts of taxes that will weigh down heavily the general value of the investments you make.

      IRA are traditional investment accounts meaning this is the money you get your hands on after a good numbers of years. And with that in mind, the last thing you would want is to have all your retirement money falling into the hands of the government and leave you with nothing. And this urgently calls for your complete understanding of how making IRA contributions will affect your taxes for you to be on the safer end.

      To begin with, a traditional IRA has a tax limit that is deductible. This means that when you submit your contributions to your traditional account with IRA, you are at liberty to make claims for deductions of the money you contribute if at all you and your better half have an active participation in making the investments ( this basically means that if your spouse won’t make any contribution to the IRA account, there is no possibility for you to pay twice the contribution whenever you are using both of the accounts).

      However, you should note that you cannot make deductions for all of your contribution from the net income. To get an accurate figure of the exact amount of contribution you are able to deduct, you have to know your overall filing status as well as your modified adjusted gross income. As soon as you’ve gotten this, you can now easily determine how much deductions you can make to pay your taxes from your net income.

      As of now in 2014, if you are in the age bracket of 49 and below, you have the right to deduct as much as $5,500 from your net income but if you are 50 and above, you can get upto $6,500. Any amount of cash you pay as contribution to your retirement account is always above the amount that is allotted and it is categorized as income.

      Apart from the extra money you send to your IRA account, you are not going to experience any kind of strains when feeding your traditional IRA. Although you should understand that when you are making withdrawals from your account, you will have to pay taxes. But the good thing about this is that you no sort of paperwork is going to be required when withdrawing your money. All that is needed is just for you to get your 1040 or the 1040A form and basically fill in the information that is needed directly.

      When it is time for you to withdraw the money from your account, the income that was not taxable back then is now taxed. And if you were to pay tax for all the money in the account, your retirement fund will greatly depreciate. And that is why you will only be taxed on every withdrawal you make.

      Whatever the amount you withdraw, that exact sum of money is considered as income and will be taxed like it. You need to be completely aware of what tax bracket you are in because all the money you end up paying as tax solely depends on what category you fall into. If you don’t want to be overcharged for having slightly higher amount of money in your account, you should be keen on the amount in your account.

      Photo by Alan Cleaver / CC by

      Posted on May 22, 2023
      Privacy Policy | Terms Of Use | Contact