Traditional IRA

Traditional IRA A traditional individual retirement account (IRA) is a type of investment account designed to help you save for retirement. They offer the potential for upfront tax deductions on contributions at the time they are made and tax- deferred growth of that money later on. How To Open a Traditional IRA You can open a traditional IRA through a: Brokerage firm, Banking institution Anyone with earned income can open and contribute to a traditional IRA and reap the benefits of tax-deferred growth. How Do Traditional IRAs Work? • Annual Contribution Limit - $6,000 for people under age 50 & $7,000 for people age 50 and over • Distribution Guidelines - the distributions you take will be taxed at your income tax rate at the time the withdrawal is made • Aside from making annual contributions, you can add to a traditional IRA by rolling over funds from another retirement account, such as a 401(k) plan. Investment Options Traditional IRAS can hold a wide variety of asset types, including: • Cash • Stocks • Bonds • Combination of assets As a result of this flexibility, you can set up an IRA to achieve virtually any risk-return profile you desire.