Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Investments & Financial Markets
  5. / Mutual Funds

by kishor on May 3rd, 2005

kishor

Question

Help answer this question below.

Can I make my own investment in stocks or mutual funds to get the $3000 deduction, or do I specifically need to invest in a Roth IRA to receive the deduction?

Share:
Other

Answers. 1 helpful answer below.

  • by postmuffin on February 15th, 2006

    postmuffin

    A Roth IRA does not get you a deduction on your tax return. Roth IRA's are funded with taxed money, so that when you withdraw the money later the money you put in it is tax free - the earnings are not tax free. A traditional IRA is the one that gets you a tax deduction. This year the limit is $4000 and it must specifically be set up in a fund that is earmarked an IRA. There are a lot of different funds you can put your money in and still have the choice of where your funds are invested, but it has to be in an IRA so that the government can control withdrawals.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading Can I make my own investment in stocks or mutual funds to get the $3000 deduction, or do I specifically need to invest in a Roth IRA to receive the deduction?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Why do nipples get erect

Answerbag

a Demand Media company