Traditional IRA

Earned income

The lesser of:

100% of income
or
$6,000

The lesser of:

100% of income
or
$7,000

If your contribution is tax deductible, then you receive an immediate tax savings because you pay fewer taxes with the deductions. The earnings generated by the IRA funds are not taxed until distributed.

If your contribution is not tax deductible, you still receive the benefit of tax deferred earnings. You may also qualify for a new tax credit.

You may begin withdrawals at any time. However you may want to understand the income tax consequences of taking distributions at certain times.

You are required to make a withdrawal of a minimum amount by April 1st of the year following the calendar year in which you reach age 72 and by each December 31st thereafter.