Traditional IRA
A retirement account where contributions may be tax-deductible now and taxed on withdrawal.
A Traditional IRA is a tax-advantaged US retirement account in which contributions may reduce your taxable income today, with taxes paid when you withdraw in retirement. It is often compared with the Roth IRA, which reverses when the tax is paid.
Examples
- A deductible Traditional IRA contribution can lower this year's taxable income.