Often, contributions are 100% deductible.
Earnings grow tax-deferred.
Distributions are generally taxable, but penalty-free if withdrawn under one of the following circumstances:
- Attaining age 59 1⁄2,
- Incurring a disability.
- Payment for certain health insurance, medical expenses, and higher education expenses.
- Payment for a first home purchase.
- Taking equal, periodic payments.
- Death (payments to beneficiaries).
- IRS tax levy.
Distributions are required to be taken by Traditional IRA holders beginning at age 70 1⁄2.
Traditional IRA Rushford State Bank