Traditional IRAs are the most basic IRA available for retirement planning and offer potential deductible contributions and tax-deferred growth. Individuals under the age of 70 1/2 with earned income are eligible. Deductible contribution limits depend upon the individual's participation in an employer-sponsored plan and modified adjusted gross income. Withdrawals before age 59 1/2 are subject to income tax and a 10% penalty. The penalty is not assessed in special situations. Distributions must begin by April 1st of the year following the year the individual reaches age 70 1/2. The account must be set up and contributions made by April 15th in order to be considered qualifying contributions for the previous tax year.
Let Richard Financial Resources, LLC set up a traditional IRA for you today!