Traditional IRA

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The Basics
A Traditional IRA is the oldest and most common type of retirement plan.  It may be opened by any individual who has earned income and wants to set aside a portion for retirement on a tax-deferred basis. Contributions to Traditional IRAs may be made until you are 70½ years of age.

Funding Your Self -Directed IRA
A Traditional IRA may be funded with a transfer, a rollover, or a yearly contribution. The most common way to fund  a Traditional IRA is with an IRA-to-IRA transfer. A rollover is initiated, by the plan participant/IRA-holder, when moving funds froman existing employer plan, such as a 401(k), or a pension plan. Contributions can be made yearly (see chart below for contribution limits).

Why Consider a Self-Directed Traditional IRA?

• You are eligible to deduct your contribution now and you anticipate your tax rate at retirement to be lower than your current tax rate.
• You need a tax deduction, lowering your current tax bill. (Some investors still contribute to an IRA account even without the tax deduction).
• Your income is over $122,000 for 2011 or $125,000 for 2012 (filing as single) or $179,000 for 2011 or $183,000 for 2012 (married filing jointly)  since you are not eligible to make a Roth IRA contribution.
• You are looking for a larger choice of investment options for your funds.

Please consult your tax professional for the plan that best suits your individual needs.

Download a Self Directed IRA Application
Are you ready to open your Self Directed IRA?
Click here to download a copy of our Self Directed IRA application packet. This packet includes everything you need to open an account: application, fee schedule, and introduction information.

Traditional IRA Eligibility
If you have earned income and want to save for retirement on a tax-deferred basis, you may contribute to a Traditional IRA until you are 70½ years of age.

If you are eligible to contribute to an IRA, the amount you can deduct from your taxes will depend on whether you (or, in some cases, your spouse) are an active participant in a retirement plan at work.