A Traditional IRA may give you an immediate tax benefit because contributions are often tax deductible. With a Traditional IRA, up to $5,500 of tax-deferred earned income in tax year 2018 and $6,000 of tax deferred income in tax year 2019 may be placed in the IRA until the account owner reaches 70½ years of age. Account owners may also contribute an additional $5,500 a year of earned income in tax year 2018 and $6,000 of tax earned income in tax year 2019 to a separate IRA for a non-income-earning spouse. Account owners who are age 50 or over are allowed to contribute an additional $1,000.
Taxable distributions from an IRA can be taken without penalty starting at age 59½ and must be started by April 1st of the year following the year the account owner reaches 70½.
Basic eligibility requirements
- You must be under age 70½ by the end of the calendar year
- You must have earned income or a spouse with qualified earned income
- No income limits
Account Minimums and Fees:
- There is no minimum initial deposit required to open an account
- There are no maintenance fees for retirement accounts
Need help deciding between a Traditional IRA or a Roth IRA? Try our IRA Selection Tool
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