Traditional IRA

(redirected from Traditional Individual Retirement Account)
Also found in: Wikipedia.

Traditional IRA

A tax-deferred individual retirement account that allows annual contributions of up to $2000 for each income earner. Contributions are fully deductible for all individuals who are not active participants in employer-sponsored plans or for plan participants within certain income ranges.

Traditional IRA

An investment retirement account in which a worker makes tax deductible contributions up to a certain limit throughout his/her working life. Unlike Roth IRAs, contributions are tax deductible but withdrawals are taxed, effectively deferring tax on the account until the worker begins making withdrawals in retirement. Importantly, however, tax deductibility of contributions depends on one's tax bracket. The limit to annual contributions varies by year and is indexed to inflation. Traditional IRAs are allowed to invest in securities and, in practice, normally own common stock and certificates of deposit. See also: 401(k).
References in periodicals archive ?
Traditional Individual Retirement Account (IRA) - Allows qualifying individuals to annually make a $2,000 tax-deductible and tax-deferred contribution toward their retirement.
10) Traditional Individual Retirement Accounts (IRAs) require the holder to take distributions at age fifty-nine-and-a-half, reducing the principal; this makes the traditional IRA less effective as an instrument for wealth transfer at death.
All income would include investment income, income from funds set aside in 401(k)s, traditional Individual Retirement Accounts, rental income and royalty income, which continue after one retires from a wage or salary occupation.
With 401Ks, traditional Individual Retirement Accounts (IRAs) and Roth IRAs, retirement account options are plentiful.
Wealthy investors now have the option of converting their traditional Individual Retirement Accounts (IRAs) to tax-free Roth IRAs, something previously allowed only for those with incomes less than $100,000.
Traditional individual retirement accounts (IRAs) are tax-deferred retirement investment vehicles available for those under age 70.
Expanded IRAs: This provision would significantly expand traditional individual retirement accounts (IRAs), more than doubling the amount for which savers could take federal tax deductions, and significantly increasing the income ceiling for eligibility.
Traditional individual retirement accounts or Roth IRAs also offer worthwhile tax advantages, CPAs advise.
For most individual taxpayers, April 15 is the deadline for making 2002 contributions for Coverdell Education Savings Accounts and Roth and Traditional Individual Retirement Accounts (IRAs) for 2002.

Full browser ?