First Republic Private Wealth Management includes First Republic Trust Company; First Republic Trust Company of Delaware LLC; First Republic Investment Management, Inc., an SEC-Registered Investment Advisor; and First Republic Securities Company, LLC, Member FINRA/ SIPC.
Contributions to a traditional IRA reduce your AGI (Adjusted Gross Income) and lower your taxes. Your contribution must be made by April 15 following the tax year to be deductable. Contributions to a Roth IRA do NOT reduce AGI and do not lower your current taxes.
Regardless of income but subject to contribution limits, contributions can be made to a Traditional IRA and then converted to a Roth IRA. This allows for backdoor contributions where individuals are able to avoid the income limitations of the Roth IRA. Eligibility to contribute to a Roth IRA phases out at certain income limits. 2  By contrast, contributions to most tax deductible employer sponsored retirement plans have no income limit. 3  Contributions to a Roth IRA do not reduce a taxpayer's adjusted gross income (AGI).