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).
A Roth IRA differs from traditional IRA in tax breaks; unlike the deductible contribution to a traditional IRA, a Roth IRA contribution is never deductible. Rather Roth IRA offers tax-exempt on withdrawal from the plan during retirement.ne can contribute to a traditional IRA or Roth IRA or both. But the total contributions to either plan cannot exceed the personâs earned income. To summarize; In traditional IRA the tax is deductible, which means the money you deposit in your IRA isnât taxed until you withdraw that money many years later.