First Republic Private Wealth Management includes First Republic Trust Company; First Republic Trust Company of Delaware LLC; First Republic Investment Management, Inc., an SEC-Registered Investment Advisor; and First Republic Securities Company, LLC, Member FINRA/ SIPC.
Contributions to a traditional IRA reduce your AGI (Adjusted Gross Income) and lower your taxes. Your contribution must be made by April 15 following the tax year to be deductable. Contributions to a Roth IRA do NOT reduce AGI and do not lower your current taxes.
Clearly, it's a good thing that you can deduct contributions to a tax-deferred retirement plan set up for your self-employed business, such as a SEP. However, that doesn't necessarily mean such contributions are preferable to contributing the same amounts to a Roth IRA instead.learly, it's a good thing that you can deduct contributions to a tax-deferred retirement plan set up for your self-employed business, such as a SEP. However, that doesn't necessarily mean such contributions are preferable to contributing the same amounts to a Roth IRA instead.