Contributions 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.
Account Summary
- Contribute $7,000 if you're under age 50 / $8,000 if you're age 50 or older1
- 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 exceptions1
- Distributions must begin by April 1st of the year following the year you reach age 732
- Anyone who has earned income is eligible2
- Traditional IRAs can generally be converted to Roth IRAs, although tax consequences may apply1