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Traditional IRA
The advantages of a traditional IRA are fewer than those of a Roth IRA.
The traditional IRA may be right for you if:
- You want potential tax-deductible contributions to lower taxes and save money immediately
- You want to defer taxes on earnings until you withdraw your money in retirement
- You are under the age of 70½ with earned income (or are filing jointly with a spouse who has earned income)
- You exceed the modified adjusted gross income (MAGI) limits to contribute to a Roth IRA
Features
- Must contribute earned income
- Maximum tax-deferred contribution of $5,000 by qualified individuals not covered by an employer-sponsored retirement plan
- Contributions may be tax-deductible
- You pay taxes on the contribution as ordinary income when you withdraw funds in retirement
- Mandatory distribution at age 70½
- Penalty-free distribution after five years for first home purchase or non-qualified educational expenses
Account Disclosure (PDF)
Schedule of Fees (PDF)
Equal Housing Lender