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).
Contributions to a Roth are never deductible. For instance, if you are covered by a retirement plan at work: 1  You can deduct up to the contribution limit, if youâre single and your modified AGI is $60,000. 2  And you can take a partial deduction if your income is between $60,000 and $70,000.3  Thereâs no deduction for people who earn more.xamples Of How You Can Contribute To Both A 401k And An IRA. Letâs look at an example of how you can combine the power of the 401ks and IRAs to speed up your retirement savings: Example #1: Consider a 30-year-old earning $55,000 per year (25% tax bracket).