What is an IRA?

A traditional IRA is a savings account with a valuable twist: you can deduct your eligible contributions from your income tax. Why does that matter? Here’s an example: You are in the 25% tax bracket this year, earn $100 dollars and then put it in a regular savings account. You’ll pay up to $25 of … Continued

Welcome to TraditionalIRA.com

Welcome to the new TraditionalIRA.com! We’re dedicated to providing you with all the essential details of traditional IRA investing. We’re here to make opening—and maintaining—an account easy. Take a tour of the site: you’ll find articles on all subjects relevant to retirement savers, in plain-spoken English. Not getting your answers? You can also ask one … Continued

Traditional IRAs for non-working spouses

Don’t worry if you’re a stay-at-home spouse—you, too, can save for retirement. The only rule is that your eligible contributions can’t exceed your household taxable income for that year. In other words, if your combined taxable income is $8,000, that’s all you can deduct, even if you contributed more to the IRA account. For details … Continued

Traditional IRA Withdrawals

Penalty-free withdrawals can be taken from traditional IRAs starting at age 59 ½. When withdrawals—formally called “distributions”—are made, the owner must pay federal and state taxes on the withdrawn amount. That’s because contributions to traditional IRAs are tax-deferred, meaning IRA owners already got a tax deduction in the years they made contributions. Traditional IRA owners … Continued

IRA Withdrawal Rules and Distributions

Quick Summary You can take your money out of an IRA at any time, but you will also owe an additional penalty if you withdraw money before you are 59½. You can avoid the penalty if you take the money out for certain hardships, like medical expenses and home purchases. Since Traditional IRAs are generally … Continued

The Rules About IRA Rollovers

Quick Summary You can “roll over” money from one retirement plan to another. An IRA rollover often happens when you leave a job. If you don’t want to leave your retirement money in your former employer’s plans, you can roll over to the plans offered by your new employer. As long as you move the … Continued

How to Invest Your Traditional IRA

How to invest? If there were a definitive answer to that question, you’d hardly need a book or a broker to help you. Unfortunately, investing is both art and science. If you’re an experienced investor, the concepts discussed below are probably old news; you can safely skip them. For others, following these general principals will … Continued

The Rules About IRA Rollovers

Quick Summary You can “roll over” money from one retirement plan to another. Rollovers often happen when you leave a job. If you don’t want to leave your retirement money in your former employer’s plans, you can roll over to the plans offered by your new employer. As long as you move the money directly … Continued

Traditional IRA Withdrawal Rules

Quick Summary You can take your money out of an IRA at any time, but you will also owe an additional penalty if you withdraw money before you are 59½. You can avoid the penalty if you take the money out for certain hardships, such as medical expenses and home purchases. As traditional IRAs are generally … Continued