I am still unsure - is the monthly ROth IRA contribution that "comes" with the account, is that what "retirement savings contributions credit" means?

Forum|Forum|1 year ago
February 27, 2025
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Just wondering if I need to report the regular monthly deduction by Primerica, or if it asks about ADDITIONAL ones?

Best answer by VolvoGirl

Yes you are contributing to your ROTH IRA. You need to enter the total contribution for the year into Turbo Tax. It can qualify you for the Retirement Savings Credit.

ThomasM125

No, a retirement savings contribution credit is a credit against your federal income tax for contributing to a retirement account. Depending on your income, if you make contributions to a retirement account during the year and meet other requirements you can get a reduction in your income tax in the form of a credit.

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sammy10005Author

Ok..... so, the standard monthly amount my Roth IRA takes out of my bank statement is NOT considered "contribution" to a retirement account here?

ThomasM125

It is a contribution that may afford you a credit. The credit would be called a retirement savings contribution credit. But the contribution would be just that, a contribution, not a credit. You may not qualify for the credit just because you make a retirement contribution. Also, the credit would be less than the contributions you make.

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