One of the chief attractions of the traditional IRA is that you can usually deduct the amount of your contributions when you file your tax return for the year, reducing your adjusted gross income. Keeping track of traditional IRA contributions so that you correctly inform the Internal Revenue Service of your contribution can sometimes be a challenge, especially if you make contributions early in the year or have authorized automatic deductions from a bank account. In case of an audit, you might need to prove to the IRS that you made IRA contributions. Documentation takes a little planning.

One of the chief attractions of the traditional IRA is that you can usually deduct the amount of your contributions when you file your tax return for the year, reducing your adjusted gross income. Keeping track of traditional IRA contributions so that you correctly inform the Internal Revenue Service of your contribution can sometimes be a challenge, especially if you make contributions early in the year or have authorized automatic deductions from a bank account. In case of an audit, you might need to prove to the IRS that you made IRA contributions. Documentation takes a little planning.