<prompt> Human: Sorry lots of details:Im 35, work in the public sector I like to help people...its a sickness I make about 42,000 a year and take home about 2,600 a month after tax and pension contribution. I save or pay tuition with 500 a month. I have been vested in the state pension plan with about 11,000 in contributions over the last 6 years. I have an old 401k with about 1,200 in investments. About 7,500 emergency fund. Another 7,000 Ive saved for a first home. Im a little behind in savings because Ive bought into becoming over educated. I have a masters degree in public admin. getting a second in social work. Im debt free and Ive got one semester to go in school. With a hefty employer tuition discount, I will have paid about 4,500 this year in tuition which I will deduct in taxes. Additionally, I plan on taking the standard deduction of 5,500 plus 2,000 pension contribution. I want to start maxing my IRA each year. Does it make sense to use my savings for a home in a Traditional IRA? That 5,500 would put me in a lower tax bracket. This will get me a big tax return by my math. Then when its time to buy my first home Ill use the money or equivalent from the traditional IRA towards points on my Mortgage and avoid big tax penalties? If this sounds feasible Ill go to some accountants and double check the veracity of Reddit advice!  <response>: You make 42k. You pay very little in taxes in the first place. Your marginal tax rate is 15 and it will still be 15 after the IRA contribution. It will save you 825 in taxes, but youll just pay that 825 later when you withdraw. 