Traditional IRAs might not be for everyone. But they could be for you.
A Traditional Individual Retirement Account (IRA) lets you save for retirement with potential tax advantages. Contributions may be tax-deductible, and your investments grow tax-deferred until you withdraw funds in retirement. This can help reduce your taxable income today while allowing your savings to compound over time. Unlike a Roth IRA, where withdrawals in retirement can be tax-free, Traditional IRA withdrawals are generally taxed as ordinary income.
First-Time Saver
"I need to start saving. They say the sooner you start, the better."
A $3,000 contribution could save $1000 in taxes this year (depending on your tax bracket, etc.)
Rollover Job Changer
"I finally found a new job, but need to roll over this old retirement fund.”
Don’t lose your precious last nerve doing it, thanks to our service.
Retirement Savings Maximizer
"I'm maxing out my 401(k), and want to save more"
Power play: $7,000 IRA + $23,000 401(k) = $30,000 in tax-deferred savings.
Contributions up to the limit are fully tax-deductible if you are not an active participant in an employer-sponsored retirement plan.
If you are an active participant and a single tax filer, your deductibility phase-out range for tax year 2026 is $81,000 - $91,000, up from $79,000 - $89,000 in 2025
If you are married and filing a joint return, your deductibility phase-out range for tax year 2026 is $129,000 - $149,000, up from $126,000 - $146,000 in 2025.
Note: For an IRA contributor who is not an active participant and is married to someone who is an active participant, the deductibility phase-out range is $242,000 - $252,000 for 2026, up from between $236,000 - $246,000 in 2025.
Traditional and Roth IRAs are separately insured to $250,000 by the National Credit Union Administration, an agency of the United States Government. Coverdell Education Savings Accounts are insured under the same provisions as irrevocable trust accounts.
| Qualifications: | Must have earned income. There are no age restrictions. |
| Maximum Contributions: | 2025: $7,000 2026: $7,500 Additional "catch-up" contribution (if age 50 or over during the year): 2025: $1,000 2026: $1,100 |
| 2025 Contribution Deadline: | April 15, 2026 |
| Tax Status of Earnings: | Tax-deferred until withdrawal |
| Nonrefundable Tax Credit: | You may be eligible to receive a credit (not to exceed $1000 or $2000 for married couples filing jointly) on your contribution if you meet certain requirements. |
| Contribution Restrictions: | None if you have earned income. However, if you are an active participant in an employer retirement plan, your contribution may not be deductible (see tax-deduction information above). |
| Tax Deduction: | Yes—see Traditional IRA tax-deduction explanation section above |
| IRS Penalties for Early Withdrawal: | None if:
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| Required Distributions: | In 2026, the Required Minimum Distribution (RMD) age is 73, meaning if you turned 73 in 2025 or will turn 73 in 2026, you must start taking RMDs from your retirement accounts. The RMD starting age was raised from 72 to 73 by the SECURE 2.0 Act, effective for those reaching 73 in 2023 or later. |
| Contribution Age Limit: | None. |
