The Traditional IRA helps you save for your retirement, and contributions may be deductible.
- Individuals under age 70½ with qualifying income may contribute
- Early withdrawals are subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home, education)
- Mandatory distributions at age 70½
Benefits
- Contributions may be tax deductible
- Interest grows tax-deferred until withdrawn
- Funds can be used to purchase a first home ($10,000 lifetime maximum)
- Funds can be used to pay for qualifying education expenses
