What is an IRA contribution?
An individual retirement account (IRA) contribution is the amount of money that a person chooses to put into an IRA in a given year. It is important for each individual to know their personal IRA contribution for tax filing purposes. Any contributions have to be made by tax day, April 15th, to count toward the previous year’s taxes. IRAs are investment accounts intended to be used for retirement. The different types of IRAs are subject to different tax laws. The two most basic types are traditional and Roth. A traditional IRA contribution is tax-deferred and any money deposited into this account during the last tax cycle can be counted as a deduction. The interest that accrues is also untaxed until the day of withdrawal. Basically, all tax is deferred on a traditional IRA contribution until the day you take the money out. Any funds in this type of IRA have to be withdrawn before the age of 70-and-a-half or they are subject to a 50% penalty. The maximum contribution to this type of acco
