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).
Roth IRA. Since you don't deduct contributions to a Roth IRA as you do to a traditional IRA, you can always withdraw your contributions tax-free and penalty-free. You'll pay taxes and the same 10 percent penalty on the amount of your early withdrawal that comes from investment income, since that wasn't taxed before.