Traditional IRA

With a Traditional IRA, you make contributions with money you may be able to deduct on your tax return. Any earnings potentially grow tax-deferred until you withdraw them in retirement.

Tax advantages

Contributions: Tax-deductible contributions

Earnings: Any earnings grow federal income tax-deferred

Withdrawals: 10% early withdrawal penalty may apply for other withdrawals taken prior to age 59½ if no exceptions apply.

Penalty-free withdrawals for first home purchase and certain college expenses

Required Minimum Distributions (RMDs) starting at age 70½

Account features:

Eligibility: Individuals less than 70½ years of age

Must have employment compensation

Maximum contribution: 2013: $5,500 ($6,500 if age 50 or older)

2014: $5,500 ($6,500 if age 50 or older)

Investment options: A wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs

Support and guidance: One-on-one guidance along with research and tools to help you create a long-term plan and make investment selections for the plan

Note: Information deemed accurate but not guaranteed. All investing is subject to risk, including the possible loss of the money you invest.

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