Traditional IRA

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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 ?
Roth and traditional individual retirement account owners had the highest percentages of "extreme asset allocations", according to an October 2013 report from the Employee Benefits Research Institute.
A traditional Individual Retirement Account is an account that allows for tax-deferred growth of contributions.
is to use life insurance to cover the tax bill due on a conversion from a traditional individual retirement account to a Roth IRA, thereby securing tax-free income at retirement.
The form of the relief would include broadening the 15% tax bracket, exempting the first $500 of joint filer interest and dividend income ($250 per single filer), exempting the first $5000 in long term capital gain, and raising the traditional individual retirement account contribution limit from $2000 to $3000.
Donate to charitable accounts to reduce the income tax generated by a Roth IRA conversion: For individuals who are converting a traditional individual retirement account (IRA) to a Roth IRA, charitable giving can help to offset the taxes resulting from such a conversion.
Before 2010, the Code limited the opportunity to convert a traditional individual retirement account (IRA) into a Roth IRA to individuals with adjusted gross income of less than $100,000 (not indexed).
You can still get an above-the-line deduction for your 2010 return by contributing to a traditional Individual Retirement Account (IRA) now.
Taxpayers who convert a traditional individual retirement account (IRA) to a Roth IRA normally have until the extended due date of their tax returns to recharacterize the Roth IRA back to a traditional IRA.
Traditional Individual Retirement Account (IRA) and Health Savings Account (HSA) contributions, moving expenses, self-employed health insurance costs and alimony payments are some above-the-line deductions that can help lower your taxable income.
The traditional individual retirement account (IRA), one of the most popular savings vehicles available, generally allows individuals to make deductible contributions of up to $2,000 annually.
Over the past 30 years, the company's services have expanded beyond its roots in the traditional Individual Retirement Account market to nearly all tax-advantaged savings accounts.
You have probably heard of a traditional Individual Retirement Account, or IRA.

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