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).
With a Roth IRA, you get no deduction for contributions, but if you follow all the rules your investment earnings will be tax-free. Traditional IRAs can provide a deduction for contributions and delay taxes on investment earnings until funds are withdrawn, typically in retirement.n 2015, you can contribute up to $6,500, which is $1,000 over the limit for younger savers. Yes, you may make contributions to both a Traditional and a Roth IRA in the same year, provided the combined total contribution does not exceed your contribution limit for the year, including any catch-up contributions.