Taxes

An IRA (Individual Retirement Arrangement) is a tax-favored savings plan for retirement, available in types like traditional and Roth IRAs. Traditional IRAs offer tax-deductible contributions with taxed distributions, while Roth IRAs provide tax-free distributions. Contributions require taxable compensation and have specific rules for rollovers and distributions.

Eligible K-12 educators can claim a deduction of up to $300 ($600 for married educators filing jointly) for out-of-pocket expenses on classroom supplies and technology.