Great rates and tax breaks
When you make a contribution to a Traditional IRA, you do it from your pre-tax earnings. That means that you can deduct qualified contributions from your taxable income, ensuring asset growth and a comfortable retirement.
- Possible tax-deductible earnings
- Tax-deferred earnings
- You (or a spouse if filing a joint tax return) must earn compensation from employment
- No age limit for contributions made
A Traditional IRA is an individual retirement arrangement that allows you to save for retirement with tax advantages. Contributions you make may be fully or partially deductible, depending on your filing status and income, and generally, amounts in your Traditional IRA (including earnings and gains) are not taxed until you take a withdrawal from your IRA.
You can withdraw funds from your Traditional IRA at anytime, subject to income tax. If you are under the age of 59 ½, an early withdrawal penalty may apply. Once you reach age 72 (or 70 1/2 in 2019 or earlier), you must withdraw a minimum amount each year to avoid penalty taxes.
Withdrawals from Traditional IRAs are taxed as regular income, based on your tax bracket for the year in which you make the withdrawal.