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Question
If I open a IRA and put the max amount is the money I put in the IRA tax deductible. Meaning is the money now not included in my total tax owed for the year.
Answer
Great question! Yes. Your IRA contribution is an “adjustment” on your taxes, meaning it reduces your taxable income dollar-for-dollar. In other words, if you had gross income of $60,000 for the year and you contribute $6,000 to your IRA, only $54,000 of your income would be taxable.

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Answer
Great question! Yes. Your IRA contribution is an “adjustment” on your taxes, meaning it reduces your taxable income dollar-for-dollar. In other words, if you had gross income of $60,000 for the year and you contribute $6,000 to your IRA, only $54,000 of your income would be taxable.

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