What are IRA contributions?

One way to save for retirement is to set up an IRA (Individual Retirement Account) and make contributions. IRA contributions are different from contributing to a 401(k) or 403(b) account or other investment account, so don't enter any non-IRA contributions here. If you rolled over any funds into an IRA account, that is also not considered an IRA contribution, so don't enter any rollovers here.

There are two types of IRAs:

• Traditional IRA: Traditional IRAs are retirement accounts with immediate tax benefits. If you contribute to a traditional IRA, you're usually allowed to take a deduction for the amount you contributed on that year's tax return.
• Roth IRA: Roth IRAs are retirement accounts with tax benefits that don't happen until you take money out of the account after retirement. If you contribute to a Roth IRA, you don't get any immediate deduction on your tax return, but the amounts you withdraw during retirement will be tax-free.