TD Ameritrade

Benefits of a Traditional IRA

 

  • Contributions to a Traditional IRA may be tax deductible (depending on income level).
  • Earnings can grow federal tax-deferred.
  • A Traditional IRA is available to everyone who earns income under the age of 70½ .
  • After age 70½, you can rollover or transfer funds from another IRA into a Traditional IRA.

Why Open a TD Ameritrade Traditional IRA?


  • Breadth of Investment Choices - Including 100+ commission-free ETFs1, no-transaction-fee mutual funds2, fixed income products, and much more.
  • Fair and Objective Research – Take control with objective third-party research provided by Morningstar Investment Management, S&P Capital IQ, and Market Edge.
  • 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  Retirement Planner and the IRA Selection Tool.

 


OPEN AND FUND AN IRA + GET UP TO $600 CASH**  Open New Account

It takes as little as 15 minutes to open a TD Ameritrade Traditional IRA and with our straightforward pricing there are no hidden fees. As always, if you have any trouble, our retirement consultants are here to help you every step of the way.

 

Traditional IRA Rules

Eligibility

To participate, you must be under age 70½ by the end of the calendar year.
You must earn income, but there are no income limits.

Contributions

May be tax deductible

Maximum Contributions

Up to age 50:  $5,500
Age 50-70½:   $6,500
Non-income-earning spouse:  $5,500 (into a separate IRA)

Earnings

Grow tax deferred until withdrawn, typically at retirement

Distributions

Penalty-free and taxed as ordinary income when taken after age 59½

Required Minimum Distributions

Required April 1 of the year following the year you turn 70½ and by December 31st every year thereafter

Early Withdrawals

Before age 59½ are subject to a 10% penalty in addition to any ordinary income tax that may be due


401k Rollover

If you have multiple retirement accounts at different institutions, consider consolidating your assets with a 401k rollover to an IRA.


Traditional IRA vs. Roth IRA

Need help deciding between a Traditional IRA and a Roth IRA? Try our IRA Selection Tool or view a comparison chart to find out which IRA is right for you.

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