A traditional IRA is a simple solution with immediate tax advantages. In fact, many experts recommend traditional IRAs because money can be contributed on a tax-deferred basis each year.
With a traditional IRA, you get:
- Opportunity to lower your tax liability. Contributions are tax deductible*.
- Tax-deferred growth. You don't pay taxes on your earnings until you withdraw money.
- A wide range of investment choices to meet your individual needs.
- Flexibility to invest as much as you'd like, up to annual limits.
Traditional IRA vs. Roth IRA
- Compare eligibility, contributions, and distribution details (PDF: 40KB) for traditional IRA's and Roth IRA's.
- Use online calculators to figure out which IRA better suits your financial needs.
*Based on your income level and other limitations, consult your tax advisor for specifics.