A Traditional Individual Retirement Account, or IRA, is an investment account that helps you save for retirement and reduce taxes. A Traditional IRA lets you deduct contributions from your income to reduce your taxes now. Your money won’t be taxed until you withdraw it on or after age 59 ½.
In 2024, contribution limits increased to $7,000, or $8,000 if you’re age 50 or older.
Income limits for Traditional IRAs don’t apply to contributions but can reduce or eliminate your ability to deduct contributions.
The main difference between a Traditional IRA and Roth IRA is the way they are taxed. Your Traditional IRA contributions are tax deductible, but you will pay taxes on your withdrawals in retirement. Read more about Roth IRAs
In 2024, those contribution limits increased to $7,000 or $8,000 if you’re age 50 or older. Your contribution limit doesn’t apply to rollover contributions.
Here are key steps to contribute to a Traditional IRA to get a pre-tax deduction.
Find out about your Traditional IRA eligibility by starting a Traditional IRA application online or calling us at 844-TIAA-IRA
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1Your RMD Applicable Age was 70 ½ if you were born before 7/1/49; 72 if you were born on or after 7/1/49 or in 1950; 73 if you were born between 1951 and 1958; 75 if you were born in 1960 or later. If you were born in 1959, federal guidance is needed to determine if your RMD Applicable Age is 73 or 75.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
* Some IRAs may be eligible for support only, and not advice services. Advice services use a methodology from Morningstar Investment Managment, LLC.
Withdrawals of earnings prior to age 59½ may be subject to ordinary income tax and a 10% penalty.
Before rolling over or consolidating assets, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer's plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more at TIAA.org/reviewyouroptions.
Certain securities may not be suitable for all investors. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC.