Retirement

Traditional IRA

A Traditional IRA allows tax-deductible contributions (if eligible) and tax-deferred growth. You pay income tax on withdrawals in retirement. Good if you expect a lower tax rate when retired.

Example

Deduct $6,000 now; pay tax on withdrawals later.

Related Terms

Get investing tips in your inbox

Subscribe for simple financial insights and product updates. No spam, ever.

No spam, ever. Unsubscribe anytime.

Traditional IRA — Definition & Example | Investors Lab | Investors Lab