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Retirement & Planning
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Traditional IRA


What is a Traditional IRA?

A Traditional IRA is an Individual Retirement Account to which you contribute pre-tax or after-tax dollars, and which allows your money to grow tax-deferred. When you make withdrawals after age 59½, they're treated as current income.

Need IRA help? Call 866-855-5636 anytime.

See if contributions are deductible

  • Depending on your income level, Traditional IRA contributions may be deductible from your taxable income.

See Traditional IRA withdrawal rules

  • Age 59 and under: Taxes and 10% penalty apply.
  • Age 59½ to 70: Taxes apply, but no penalties.
  • Age 70½ and over: Taxes apply, and distributions are required by law.

At a glance: Traditional IRA vs. Roth IRA.

  Traditional IRA Roth IRA
  • Contributions may be tax-deductible.
  • Earnings can grow tax-deferred.
  • Contributions are not tax-deductible.
  • Earnings can grow tax-free.
  • After age 59½, withdrawals are penalty-free but taxed as current income.
  • You must begin taking distributions at age 70½.
  • Contributions are always tax- and penalty-free.
  • After age 59½ and if the account has been open 5 years, earnings are tax- and penalty-free.
  • Distributions are not required.
Funding your account
  • Use money you’ve earned.
  • Roll over an old 401(k).
  • Transfer an IRA.
  • Use money you’ve earned.
  • Convert a Traditional IRA to a Roth IRA.
  • Roll over an old 401(k).
  • Transfer an IRA.
Income limitations
  • Anyone with earned income can contribute to a Traditional IRA.
  • Some contributions may be tax-deductible. See contribution limits.
  • You aren’t eligible for a Roth IRA if your earned income is above a certain level. See income limitations.
Age guidelines Before reaching age 70½, you can contribute if you have earned income. N/A
Investment options Mutual funds, stocks, bonds, ETFs, CDs, and money market funds. Mutual funds, stocks, bonds, ETFs, CDs, and money market funds.

Take the next step.

Open a Traditional IRA today.

Apply Now or call 866-855-5636.

Helpful Resources