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).
You can still make your annual contribution if you also convert money from a tax-deductible account (like a Traditional IRA) to a Roth in the same year. You can contribute to a Roth even if you participate in a retirement plan through your employer. Rules for Existing Roth Accounts