Tag: traditional IRA

This article explains traditional IRAs, a retirement savings option available since 1975. Unlike Roth IRAs, traditional IRAs allow for upfront tax deductions on contributions, lowering your taxable income, but withdrawals in retirement are taxed as ordinary income. Contributions are limited to $7,000 annually (or $1,000 extra for those 50+), and anyone with earned income can contribute regardless of income level. While early withdrawals typically incur a 10% penalty