A Traditional IRA is a method of saving for retirement with good tax advantages.
You contribute to the IRA, and those contributions are either totally or partially deductible.
This depends on the situation. Usually what you have saved in the Traditional IRA is not taxed until when you take a distribution.
This was the first of the various IRAs and it came into being back in 1974 as part of the Employee Retirement Income Security Act.
You can contribute up to $5,000 in a year if you are under 50 years old and $6,000 in a year if you are 50 years old and over.
The nice thing is that whatever you contribute is usually tax deductible in the same year.
A Traditional IRA can be converted into a Roth IRA, but the reverse is not allowed.
Below is a link to more information about the details of setting up the Traditional IRA for retirement, that you should read.
There are IRA limits.
The publication 590 has the scoop on the maximum IRA contribution, and information about withdrawal from IRA as well as an IRA withdrawal penalty and receiving distributions.
Read about, how to transfer property to and from an IRA.
The IRS says that it is an Individual Retirement Arrangement.
