Retirement Planning/Ira double taxed?

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Question
If I contribute to my Ira from my savings, will I be taxed on that when I withdraw it later?  I'm a bit confused, because being that the money in my savings account would have been taxed already from my paycheck, then if its taxed again later that's double taxation.  I'm I missing something?

Thanks you

Tom

Answer
The intent of a Traditional IRA is to use pre-tax earned income. Effectively, it doesn't matter from what account the funds are moved into the IRA, the total annual contribution cannot exceed your annual income, and the total amount contributed is deducted from your taxable income. In the end, no, you are not taxed twice on your money.

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Rob Drury

Expertise

Retirement planning, tax qualified retirement plans (401(K), IRAs, etc.), mutual funds, insurance used in retirement planning, estate planning (tax planning, transfer of assets, creditor protection).

Experience

Comprehensive financial planner, 14 years; Executive Director, Association of Christian Financial Advisors, the nation's largest nonprofit financial planning network. Financial writer and frequent contributor to journalists and media sources.

Organizations
Association of Christian Financial Advisors (Executive Director), National Association of Insurance and Financial Advisors (NAIFA).

Education/Credentials
BBA, MAS; Securities licenses, FINRA Series 6, 63, 65, 22

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Fox Business News, Yahoo Finance, Yahoo Small Business, BankRate.com, Savingforcollege.com, BoomerPlaces.com, InsuranceQuotes.com, InsuranceQuotes.org, DailyFinance.com, Credit.com, Military.com, VitalAdvice.com, Can Do Finance Online, Credit Sesame, Money & Finance Online, The Fiscal Times, Business Insider, military-advanced-education.com, ExpertBeacon.com

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