Traditional IRAs Tutorial
AAA
  1. Traditional IRAs: Introduction
  2. Traditional IRAs: Eligibility Requirements
  3. Traditional IRAs: Contributions
  4. Traditional IRAs: Distributions
  5. Traditional IRAs: Conclusion

Traditional IRAs: Introduction

By Denise Appleby

There is no question that the world of retirement and retirement plans is a confusing one. With so many options to choose from, how does an individual know which one is best for his or her situation? This tutorial looks at the Traditional Individual Retirement Account - otherwise known as the Traditional IRA. We will go through how it works, how to set one up and even how distributions are taxed. Why Establish a Traditional IRA?
A Traditional IRA is an excellent supplement to an individual's retirement income. Making contributions is discretionary, so individuals can choose when they want to fund their Traditional IRA.

Contributions to a Traditional IRA may be tax deductible, and the earnings grow on a tax-deferred basis. This means that assets in the Traditional IRA are not taxed until they are withdrawn, allowing the owner to defer paying taxes until retirement, when he or she may be in a lower tax bracket, depending on his or her income and the tax rate that applies. Contributions are subject to statutory limits.

Traditional IRAs: Eligibility Requirements

  1. Traditional IRAs: Introduction
  2. Traditional IRAs: Eligibility Requirements
  3. Traditional IRAs: Contributions
  4. Traditional IRAs: Distributions
  5. Traditional IRAs: Conclusion
RELATED TERMS
  1. Qualified Longevity Annuity Contract

    A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity ...
  2. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  3. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  4. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  5. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  6. Medigap

    Also called Medicare Supplement Insurance, Medigap is health ...
  1. Does my employer's matching contribution count towards the maximum I can contribute ...

    Maximize 401(k) contributions on your own without fear; employer contributions are separate and do not hinder you contributing ...
  2. How much will an employer generally contribute to a 401(a) plan?

    Find out how much employers may contribute to an employee's 401(a) retirement plan and why this amount can vary so widely ...
  3. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ...
  4. Is Social Security Income a perpetuity?

    Find out why Social Security income is not classified as a perpetuity, including what constitutes a perpetuity and the basics ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Ethical Investing Tutorial

  2. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  3. Retirement

    Consolidating Your Retirement Money

  4. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  5. Mutual Funds & ETFs

    Guide To ETF Providers

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!