Traditional IRA

What is an individual retirement account?

  • An individual retirement account is a tax-favored individual retirement arrangement (IRA) created exclusively to save for retirement.

What are the benefits of a Traditional IRA?

  • Tax-deductible contributions, if eligible.
  • Tax-deferred earnings.
  • Tax credit, if eligible.

Who is eligible to contribute to a Traditional IRA?

  • Traditional IRA owners must be under age 70-1/2 and have eligible compensation (generally earned income) to contribute to Traditional IRA's.  These requirements, however, do not apply to rollover and transfer contributions.

Are distributions from a Traditional IRA ever required?

  • Traditional IRA owners must take annual distributions from their Traditional IRA's beginning the year they reach age 70-1/2.