Is a Traditional IRA right for you?
Benefits of a Traditional IRA
- Contributions to a Traditional IRA may be tax deductible (depending on income level).
- Earnings can grow federal tax-deferred.
- Starting in tax year 2020, a Traditional IRA is available to everyone who earns income.
Why open a TD Ameritrade Traditional IRA?
- Breadth of Investment Choices - Including commission-free ETFs, no-transaction-fee mutual funds1, fixed income products, and much more.
- Empowering Education - We offer exclusive videos, useful tools, and webcasts to help you create a personalized retirement plan.
- Smart Tools – Plan and evaluate your retirement strategy with helpful tools like the IRA Selection Tool and Retirement Calculator.
- Fair and Objective Research - Take control with objective third-party research provided by Morningstar Investment Management, CFRA (formerly S&P Capital IQ), and Market Edge
Traditional IRA Rules
You must earn income, but there are no income limits
May be tax-deductible
Up to age 50: $6,000
Over age 50: $7,000
Non-income-earning spouse: $6,000 (into a separate IRA)
Up to age 50: $6,500
Over age 50: $7,500
Non-income earning spouse: $6,500 (into a separate IRA)
Grow tax-deferred until withdrawn, typically in retirement
Penalty-free and taxed as ordinary income when taken after age 59 1/2
Required Minimum Distributions
If you turned 70 1/2 prior to January 1, 2020: Required April 1 of the year following the year you turn 70 1/2 and by December 31st every year thereafter
If you turned 70 1/2 after January 1, 2020: Required April 1 of the year following the year you turn 73 (unless you turned 72 prior to January 1, 2023, then your RMD's must begin by 72) and by December 31st every year thereafter
Before age 59 1/2 are subject to a 10% penalty in addition to any ordinary income tax that may be due