Traditional IRAApply NowContributions are tax-deferred. If you expect your tax rate during retirement to be lower than it is today or if you want to reduce taxable income now, this option may be a better fit for you.
- Contribute up to $5,500 of earned income per year, or $6,500 if you're 50 and over, until you are 70½ years old1
- Contributions may be tax-deductible if you meet certain conditions1
- Withdraw funds without penalty beginning at age 59½. Withdraw before 59½ at 10 percent penalty (plus possible bank fees), with certain exceptions2
- Distributions must begin by April 1st of the year following the year you reach age 70½
- Anyone under 70½ who has earned income is eligible
- Traditional IRAs can generally be converted to Roth IRAs, although tax consequences may apply1