A Traditional IRA may give you an immediate tax benefit because contributions are often tax deductible. With a Traditional IRA, up to $6,000 of tax deferred income may be placed in the IRA. Account owners may also contribute an additional $6,000 a year of earned income to a separate IRA for a non-income-earning spouse. Account owners who are age 50 or over are allowed to contribute an additional $1,000.
Taxable distributions from an IRA can be taken without penalty starting at age 59½ and must be started by April 1st of the year following the year the account owner reaches 72, unless you turned 70½ prior to January 1, 2020. If this is the case, you must begin taking distributions starting April 1st of the year following the age the account owner reaches 70½.
Basic eligibility requirements
- Starting in tax year 2020, there are no age limits
- You must have earned income or a spouse with qualified earned income
- No income limits
Account Minimums and Fees:
- There is no minimum initial deposit required to open an account
- There are no maintenance fees for retirement accounts
Need help deciding between a Traditional IRA or a Roth IRA? Try our IRA Selection Tool