Traditional IRA Account

Overview of Traditional IRA

This type of account allows you to make contributions with money that can be deducted on your tax return, and any earnings can take advantage of tax-deferred growth until you decide to withdraw the funds in retirement. When the funds are withdrawn according to IRS guidelines, they will be taxed as income.

Most 401(k) rollovers to IRAs are traditional funds and are rolled into a traditional IRA.

You can begin withdrawing from your account at age 59 1/2  (any withdrawals before this age are subject to penalty and taxes) and you’re required to take a distribution each year beginning in January after the age of 73.

Traditional IRA contributions can also be made from a spouse’s income as a spousal IRA contribution if one spouse isn’t working.

Traditional IRA Account

Crypto IRA (Traditional)

Traditional IRA Account





Tax Deduction

2024 Contribution Limit



($8,000.00 age 50 and over)
Must have earned income  Age 59 and under: Taxes and 10% penalty apply
Age 59 1/2 – 73: Taxes apply, but no penalties
Age 73 & Over: Taxes apply, and distributions are required by law (RMD)

Tax-Deductions Now and Tax-Deferred Growth

You can grow your retirement account over time and it’s tax-deferred, while you may also qualify for yearly tax-deductions.

Some people may find their retirement income is lower than when they were working, meaning that their IRA distributions would be taxed at a lower rate.