Traditional IRA

Traditional is a relative term. If you call tax- advantaged savings that leave you in position to enjoy your retirement "traditional," then traditional IRA is perfectly named.

In addition to tax-deferred earnings, contributions may be tax deductible. Capitalizing on compound interest will leave you with the ability to do...well...whatever you want with you're retirement. You'll have the money for it.

Summary
  • Current income grows tax free
  • Interest earnings are tax deferred
  • Contributions may be tax deductible*
  • Compound interest on entire balance
  • Can contribute up to $5,000 per year
  • Additional $1,000 "catch up" contribution allowed for ages 50+
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals begin at age 70½
  • Invest within IRA via variable rate account, fixed-rate CDs, or both
  • $500 minimum deposit to open
  • FDIC insured

*Consult with a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.