Traditional IRA

Traditional IRA

A Traditional IRA is a retirement account that allows you to defer taxes on your earnings until you withdraw the funds. Depending on your financial situation, you may be able to receive a tax deduction on your contribution in the tax year for which it is made. Once you reach the age of 59½, you may start making withdrawals from your IRA without penalty. You must begin taking distributions from your Traditional IRA when you reach the age of 70½.

Don't know how much money you need to save for retirement? Try our Retirement Calculator.

You should consult your tax advisor to help you understand how opening a Traditional IRA account would affect your specific tax situation.

* Penalties for early withdrawal of funds may apply. Rates accurate as of June 23, 2010.