A Traditional IRA allows your investment earnings to grow tax deferred until withdrawn, typically at retirement. Generally, if you have earned income or receive alimony, you can establish IRA accounts prior to the tax year in which you reach age 70½. Your entire contribution may not be deductible on your income tax return, depending on your income and your eligibility for an employer-sponsored retirement plan. Additionally, at 70½ you must begin taking an annual Required Minimum Distribution (RMD), the amount of which depends on rules set by the IRS. Traditional IRAs offer two distinct advantages in terms of taxes: potential deductibility of contributions and tax deferral on investment earnings.