Traditional IRA
  • 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  • Distributions are generally taxable, but penalty-free if withdrawn under one of the following circumstances: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.