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Definition of 'Traditional IRA'
An individual retirement account (IRA) that allows individuals to direct pretax income, up to specific annual limits, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status and other factors.
Other variants of the IRA include the Roth IRA, SIMPLE IRA and SEP IRA.
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Investopedia explains 'Traditional IRA'
Traditional IRAs are held by custodians, such as commercial banks and retail brokers, and investors can place IRA funds into stocks, bonds, funds, and other financial assets deemed fit by the custodian. Assets, such as real estate come with heavy restrictions from the IRS, and may be taxed differently.
When the individual begins to receive distributions from a Traditional IRA, the income is treated as ordinary income and may be subjected to income tax. This differs from the Roth IRA, which can offer tax-free distributions. For people over the age of 50, higher annual contribution limits may apply if the IRA has been recently created or under-funded in previous tax years. Distributions are required to come out of the account by the time the owner reaches age 70.5.
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Search results for 'Traditional IRA'
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http://www.investopedia.com/video/play/roth-versus-ira
Videos /. Roth IRA Vs. Traditional IRA. ... Read More ยป; Roth IRA Vs. Traditional IRA.
Learn more about the differences between a Roth IRA and traditional IRA. ...
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http://www.investopedia.com/articles/retirement/03/012203.asp
... Traditional IRA: Which Is Right For You? ... Your eligibility to deduct traditional IRA
contributions, however, depends on whether you meet certain requirements. ...
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http://www.investopedia.com/articles/retirement/03/011603.asp
Traditional IRA Deductibility Limits For 2011. ... The following limits applied to
tax year 2008. Traditional IRA Deductibility Limit For 2011. ...
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http://www.investopedia.com/exam-guide/series-66/retirement-plans/traditional-ira.asp
Investopedia's Series 66 online Study Guide. This section discusses traditional
IRA in greater detail. ... Special Issues for Retirement Plans - Traditional IRA. ...
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http://www.investopedia.com/ask/answers/09/roll-ira-to-529-plan.asp
... Order Reprints Reprints. Feedback Feedback. Can I roll a Traditional IRA into
a 529 college account for my grandchild? A 529 plan, also ...
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http://www.investopedia.com/ask/answers/08/distribution-traditional-IRA.asp
If you take a distribution from your Traditional IRA, you can roll over the amount
to the same Traditional IRA or another Traditional IRA, provided. ...
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http://www.investopedia.com/ask/answers/05/iralimits.asp
... Feedback Feedback. I didn't record my Traditional IRA contributions. Is there
a website that lists IRA contribution limits for past years? ...
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http://www.investopedia.com/university/retirementplans/ira/
... This tutorial looks at the Traditional Individual Retirement Account - otherwise
known as the Traditional IRA. ... Why Establish a Traditional IRA? ...
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http://www.investopedia.com/university/retirementplans/ira/default.asp
... This tutorial looks at the Traditional Individual Retirement Account - otherwise
known as the Traditional IRA. ... Why Establish a Traditional IRA? ...
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http://www.investopedia.com/university/retirementplans/ira/ira3.asp
... The tax and penalty applied to distributions from a Traditional IRA depend on the
IRA owner's age at the time of the distribution and the tax-deductibility ...
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