With a Traditional IRA, you make contributions with money you may be able to deduct on your tax return. Any investment gains grow tax-deferred until you withdraw them in retirement.
Plan Benefits:
Is this retirement account right for you?
Contributions are tax deductible
Penalty-free withdrawals after age 59 1/2
No earned income limits on participation
Contributions are protected from creditors
Can be paired with other retirement plans
Eligibility:
For 2020 or later, available with no age limit to individuals.
Must have earned income
2022 & 2023 Contributions:
Contributions may be tax deductible with a maximum contribution of $6,000 ($7,000 if age 50 or older) for 2022 and a maximum contribution of $6,500 ($7,500 if age 50 or older) for 2023.
For 2020 or later, there is no age limit on making regular contributions
Investment Returns or Gains:
Investment returns or gains can grow tax deferred
Funding Your Account:
Contribute earned income
Rollover funds from a 401(k)
Transfer an IRA
Withdrawals:
After age 59 1/2 withdrawals are penalty-free, but taxed as current income
10% early withdrawal penalty may apply for withdrawals taken prior to age 59½
Hardship distributions for immediate and heavy financial need. Money is taxed to the participant and not paid back to the borrower’s account.
Plan Benefits:
Contributions are tax deductible
Penalty-free withdrawals after age 59 1/2
No earned income limits on participation
Contributions are protected from creditors
Can be paired with other retirement plans
Is this retirement account right for you?
Eligibility:
For 2020 or later, available with no age limit to individuals.
Must have earned income
2022 & 2023 Contributions:
Contributions may be tax deductible with a maximum contribution of $6,000 ($7,000 if age 50 or older) for 2022 and a maximum contribution of $6,500 ($7,500 if age 50 or older) for 2023.
For 2020 or later, there is no age limit on making regular contributions
Investment Returns or Gains:
Investment returns or gains can grow tax deferred
Funding Your Account:
Contribute earned income
Rollover funds from a 401(k)
Transfer an IRA
Withdrawals:
After age 59 1/2 withdrawals are penalty-free, but taxed as current income
10% early withdrawal penalty may apply for withdrawals taken prior to age 59½
