Are my IRA contributions tax-deductible?

Sometimes. With a deductible IRA, you get to deduct your contributions on your tax return — essentially getting a refund on the taxes you paid earlier in the year.

You fund a nondeductible IRA with after-tax dollars. You cannot deduct contributions on your tax return.

Obviously, a deductible IRA, which can lower your tax bill, is a better deal. But not everyone qualifies for one. Whether you qualify depends on your income, filing status, whether you have access to an employee-sponsored retirement plan at work and whether you receive Social Security benefits.

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