Traditional IRA

A Traditional IRA (Individual Retirement Account) is a tax-advantaged savings account meant for retirement. You can contribute pre-tax money, which may lower your taxable income for the year. The funds in the account grow tax-deferred, meaning you don’t pay taxes on gains until you withdraw them in retirement. Withdrawals are typically taxed as regular income. There are annual contribution limits, and penalties apply for withdrawals before age 59½, encouraging long-term saving. This account is suitable for individuals looking to save for retirement while benefiting from immediate tax breaks.