What is Traditional IRA?

A traditional IRA is a US retirement account where contributions may be tax-deductible, depending on your income and whether you or your spouse are covered by a workplace plan. Deductible contributions and all earnings are taxed when withdrawn.

Why Traditional IRA matters

Whether the deduction is available at all depends on income, so two people contributing the same amount can get different tax results.

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Lessons that use this term

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