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.
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
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.