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.
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 72
Disbursements: Penalty-free but taxed as current income after age 59 1/2
Mandatory Distributions: Starts at age 72