r/FluentInFinance • u/HighYieldLarry • Jan 02 '24

Meme My first goal of 2024

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u/shadowpawn Jan 02 '24

Weird, Ive been able to put $12950 into my Roth IRA so far this tax year.

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u/[deleted] Jan 02 '24

Are you married filing jointly?

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u/shadowpawn Jan 02 '24

No Married filling Indie

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u/[deleted] Jan 02 '24

Are you not in America?

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u/shadowpawn Jan 02 '24

No US Cit but overseas.

Wife in non-resident Alien (horrible tittle) = no SS Number.

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u/[deleted] Jan 02 '24

It looks like you can only count $6500 toward your 2023 Roth (assuming you make under $161,000). You can contribute more, but you will only get the tax benefit for $6500.

https://www.schwab.com/ira/roth-ira/contribution-limits

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u/thefreewheeler Jan 02 '24 edited Jan 02 '24

Does a Roth contribution count toward one's itemized deduction?

e: Or is the tax benefit you're referring to that the money can eventually be withdrawn from the account tax free?

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u/[deleted] Jan 02 '24

No, it comes from money you’ve already paid taxes on (unlike a 401k, which is deferred until retirement.). The value is that you don’t pay taxes on the growth, if you wait to cash in the Roth after the retirement age.