Traditional IRA
A Traditional IRA is a tax-qualified savings account for individuals that allows you to set aside money for retirement. All earnings in a Traditional IRA are tax-deferred until withdrawn by the IRA owner or his/her beneficiary. Anyone who is under age 70 ½ and has earned income is eligible to contribute to a Traditional IRA.
- Earnings on tax-deductible contributions can grow tax deferred
- Taxes are paid when distributions are taken
- Must have earned income (compensation) to contribute to a Traditional IRA
- Penalty-Free Withdrawals can begin at age 59 ½
- RMD (Required Minimum Distributions) begin at age 73
- Competitive rates
Traditional/Roth Contribution Limits
Year
Standard Contribution
Catch-Up Contribution
(for ages 50 or older)
2022
$6,000
$1,000
2023
$6,500
$1,000
2024 and on
Indexed with Inflation
