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).
Deduction for Contributions. Only some contributions to traditional IRA contributions result in a tax deduction. If you and your spouse don't have retirement plans through your employer, you can always deduct your traditional IRA contribution. Employer plans include 403(b) plans, 401(k) plans or 457 plans.he amount that you save from your contribution equals your deduction amount times your marginal tax rate. For example, if you pay a 15 percent marginal tax rate, a $6,000 deduction only saves you $900. However, if you pay a 30 percent marginal tax rate, that same contribution saves you $1,800.