However, if youâre curious, there is a fascinating system behind ABA numbers. The ABA number is like an address that tells everybody where to find your account. ABA numbers are also known as routing transit numbers (RTNs). âABAâ is used because the American Bankers Association (ABA) assigns the numbers to banks.
In contrast to a traditional IRA, contributions to a Roth IRA are not tax-deductible. Withdrawals are tax-free under certain conditions (for example, if the withdrawal is only on the principal portion of the account, or if the owner is at least 59Â½ years old).
1 Roth IRA earnings are only tax-free if withdrawn after 59 1/2, even if used for education expenses (i.e. tax implications of retirement accounts). 2  If you contribute to a Roth IRA and qualify for the Saverâs Credit, you could get a break on your taxes.ontributions to a Roth or a 529 are not tax deductible (except at the state level for some 529 plans), though by contributing to a Roth IRA, you may qualify to earn the Saverâs Credit. 1  If you can save less than $5,000 a year, Roth contributions alone may be your best bet ($10,000 if both parents are saving).