A Traditional IRA is a retirement brokerage account that provides federally tax-deferred growth. It allows you to make pre-tax contributions.

This account type is built for people who expect to be in the same or lower tax bracket in the future.

Below is a quick summary of what a Traditional IRA offers.

Growth: Tax-Deferred
Deductible Contributions: Yes
Contributions: Before-Tax Dollars
Maximum: $6,000 ($7,000 if you are over age 50)
Income Restrictions: None
Age Limit: No contributions after age 70 1/2
Disbursements: Penalty-free but taxed as current income after age 59 1/2
Mandatory Distributions: Starts at age 70 1/2

Summary: Tax-deferred growth and tax benefits today

To compare Traditional IRAs against Roth IRAs, check out this helpful guide. You can read more about Traditional IRAs on the IRS website

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