Traditional IRA

(redirected from Traditional Individual Retirement Accounts)

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 ?
If lawyers stay on the job past their 70th birthday, mandatory distributions from traditional Individual Retirement Accounts (IRAs) must start after age 70-and-a-half.
Traditional individual retirement accounts (IRAs) and qualified retirement plans such as Sec.
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.
The research shows widespread support across political parties for maintaining the current tax treatment of retirement savings vehicles such as 401(k) plans, 403(b) plans and traditional individual retirement accounts (IRAs).
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.
Roth IRAs, despite their attractive features, have yet to match the popularity of traditional individual retirement accounts.
Traditional Individual Retirement Accounts (IRAs) and eligible Roth IRA holders could save an extra $1,000 a year in 2006.
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.
TOPIC: Many people are deciding to convert their traditional individual retirement accounts to Roth IRAs, according to an article by The Washington Post.

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