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).
Clearly, it's a good thing that you can deduct contributions to a tax-deferred retirement plan set up for your self-employed business, such as a SEP. However, that doesn't necessarily mean such contributions are preferable to contributing the same amounts to a Roth IRA instead.learly, it's a good thing that you can deduct contributions to a tax-deferred retirement plan set up for your self-employed business, such as a SEP. However, that doesn't necessarily mean such contributions are preferable to contributing the same amounts to a Roth IRA instead.