True or False. You are in the 24% marginal tax bracket. You make a Roth IRA...

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True or False. You are in the 24% marginal tax bracket. You make a Roth IRA...

True or False. You are in the 24% marginal tax bracket. You make a Roth IRA contribution of $5,000 for that tax year. This contribution will reduce your income taxes by $1,200 for the tax year.

True

False

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Answer 1

Answer #1

FALSE.

With Roth IRAs, you don't get a tax deduction when you make a contribution, so they don't lower your adjusted gross income that year. But, as a result, your withdrawals in retirement are generally tax-free. But contribution to Roth - IRA will not reduce taxes in the year of payment.

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Answer 2

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