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 deduct your contributions if you qualify. Your contributions arenât deductible. The most you can contribute to all of your traditional and Roth IRAs is the smaller of: 1  $5,500 (for 2015 and 2016), or $6,500 if youâre age 50 or older by the end of the year; or.  your taxable compensation for the year.