IRA contributions
Tax-advantaged retirement savings
IRA contributions are payments into an Individual Retirement Account, a tax-advantaged savings vehicle for retirement.
Traditional IRA contributions may be tax-deductible, reducing taxable income in the year they're made.
Roth IRA contributions are made with after-tax dollars but grow tax-free.
Annual contribution limits are set by law: I maxed out my IRA contributions this year.
- retirementLeaving the workforce permanently
- 401kEmployer-sponsored retirement savings
- RothIRA permitting tax-free withdrawals
- traditionalFollowing long-held customs
- tax-deductibleSubtractable from taxable income
tax-free growth · savings · rainy day fund · compound · annual · limit · deadline · April · paycheck · deduction · beneficiary · rollover · withdraw · penalty · vesting · tax-sheltered · tax year · portfolio
IRA contributionsconsumer spending
Household purchasing of goods
living beyond one's means · discretionary spending · splurging · impulse purchases · spending spree
IRA contributionsliving paycheck to paycheck
Earning only enough for immediate expenses
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