Explain the tax break for traditional IRA

Yes, if you would like to receive a deduction for contributing to a traditional IRA, you will have to put money into one.

You may wish to contribute to an IRA, especially if your place of employment doesn't have a retirement plan.

You may be able to contribute up to $5,500 ($6,500 if you are 50 or older) to a traditional IRA to receive a deduction and possibly lower your tax.  

Another possiblilty is to contribute to a Roth IRA, which will not provide any immediate tax benefit but will be tax-free, including any gains, when you withdraw the funds (once you are at least 59 1/2).

More details on IRA contribution limits can be found here:  https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

If you do decide to contribute to either kind of IRA (you can also see how a contribution will affect your taxes😞

• Click on Search at the top of your screen
• Enter "Itemized deductions" in the search box (the IRA deduction is not an itemized deduction, but this will get you to the right place)
• The first link that comes up should by Jump to itemized deductions - click on this link
• Scroll down until you come to a box that will allow you Skip to see all tax breaks - click on this
• Scroll down to Retirement and Investments - click on Show more
• Click on Start next to Traditional and Roth IRA Contributions