By Denise Appleby
 

• Any individual who has taxable compensation during the year and will not reach age 70.5 by the end of the year may make an IRA contribution for the year.
• Traditional IRAs must be established with institutions that have received IRS approval, such as most banks, brokerages and savings institutions.
• A Traditional IRA can be funded from your own contributions, spousal contributions, transfers or rollovers.
• All IRA participant contributions must be made in cash.
• IRAs cannot invest in collectibles, which include art works, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages and certain other tangible personal property.
• The tax and penalty treatment applicable to distributions from a Traditional IRA is determined by the IRA owner's age at the time of withdrawal and the tax deductibility treatment of contributions.