Traditional IRA question

[rhetoricalphd]

I set up my own Traditional IRA a few years ago. I contribute 25 dollars a month to it. This is not pre-tax money though. It doesn't come right out of my pay check, I get my pay-check and then from there I contribute to the Traditional IRA.

My question: Am I doing this right? Should the money that gets contributed there be set up as pre-tax dollar contributions?

With the traditional IRA I understand that contributions may be tax deductible, do I just recover these contributions tax time?

[MakeAStash]

Sounds like you are doing the typical approach. If you qualify for a deductible tIRA when filing income taxes for that tax year you get a deduction. If you qualify for a Roth IRA that's usually better than a tIRA because the investment growth inside Roth will not be taxed upon withdrawal during retirement years.

[jackmiller]

You are doing this right- may want to look in to a Roth IRA is you qualify on the income maximums as they are a superior investment vehicle.

[autoxer]

I set up my own Traditional IRA a few years ago. I contribute 25 dollars a month to it. This is not pre-tax money though. It doesn't come right out of my pay check, I get my pay-check and then from there I contribute to the Traditional IRA.

My question: Am I doing this right? Should the money that gets contributed there be set up as pre-tax dollar contributions?

With the traditional IRA I understand that contributions may be tax deductible, do I just recover these contributions tax time?

If the contributions are deducted when you file your tax return, then they are effectively pre-tax dollars. Although it won't change how much is withheld from each paycheck, it will reduce your total tax bill due in April.