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 Benefits. While you don't get a tax deduction for contributions to your Roth IRA, there are other significant benefits to a Roth account. All of the investments in your account grow tax-free, and qualified withdrawals of your earnings are also free from federal income taxes.