What is Traditional IRA?
Definition A traditional IRA is an individual retirement account whose contributions may be tax-deductible depending on income and workplace-plan coverage. Investments grow tax-deferred, and withdrawals in retirement are taxed as ordinary income. Required minimum distributions must begin at the age set by current law.
It offers a potential up-front deduction and tax-deferred growth, and coordinating deductibility with other plans is a common individual planning question.