There probably is no 100% correct answer here, but let’s break it down. Suppose that you are 23, you’ve been working for a couple of years and are now earning $50,000 per year. For 2008, you can contribute up to $5,000 to an IRA (Traditional, Roth or a combination of both). If you ask your CPA, he or she will most likely tell you to contribute to the Traditional IRA to receive the tax deduction, which will save you approximately $1,250 in federal tax due each tax year, assuming that you are in the 25% tax bracket and you qualify for the full deduction.

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