In general, IRA contributions have a positive impact on your current tax standing. You will also benefit from extra money in your pocket, mainly because you will be saving more money for your retirement by avoiding those taxes. In addition, these IRA accounts are tax-free until you decide to take out the money that you invested. Therefore, you will not pay any taxes on the income that you actually placed into the account, so long as you don’t take it out. So, when you retire you will have lots of money even though you are not earning any income.
