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).
If your contribution is to a Roth IRA, then it is not a deduction. If it is to a traditional IRA, then up to $5,000 ($6,000 if 50 or older). It may be limited if your income is over $55,000 (single) or $89,000 (married) and you are covered by a retirement plan at work (2009 limits).