Traditional IRA Account
Introduction
1
A Traditional IRA may be opened by any individual with taxable compensation and who wants to save for retirement with tax advantages.
2
Contributions are made in cash and are "pre-tax", meaning the contribution amount can be taken as a tax deduction for that tax year.
3
Cash contributions can then buy assets (stocks, real estate, gold, etc.), and earnings on those assets are tax-deferred.
4
Earnings within your IRA do not effect your personal taxes.
5
After age 59.5, distributions from a Traditional IRA are taxed at your current income tax rate.
6
A Traditional IRA is the oldest and most common type of retirement plan.
Self-Directed IRA Educational Videos
Foundations of Self-Directed IRAs
Start with the basics and explore this retirement account introduction. Learn how retirement plans can participate in a variety of investments, including real estate, precious metals, and more. This presentation is geared toward beginners and those who are just getting started with retirement plans.
What are the Benefits of a Traditional IRA?
- You are able to invest for retirement in an account that lets your investments compound each year without being hindered by taxes.
- By contributing to your Traditional IRA, you may lower your tax bracket.
- By investing with a Traditional IRA, as opposed to outside of an IRA, you are able to invest more money because taxes have not been deducted.
- If you anticipate your tax rate at retirement to be lower than your current tax rate , your total tax burden may be less.
- You can make contributions even if you are not eligible to make a Roth IRA contribution because your income is too high.
- It can be used to invest in a wide variety of assets including real estate, precious metals, public and private stock, notes, and more.
- Early distributions may be taken without penalties for unusual circumstances like first home purchase or certain medical expenses.
- It can be a part of a generational wealth plan.
Traditional IRA Eligibility and Other Rules
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. At that time, contributions must end, and required minimum distributions begin. 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. You may have multiple IRA accounts (as many as you wish). Assets may be moved between Traditional IRAs, without a tax consequence, at your discretion.
It's Easy to Invest for Retirement with a Traditional IRA
| Step 1 | Open a Traditional IRA account with New Direction IRA. |
| Step 2 | Put money in that IRA by rolling money over from an old 401(k), transferring from another IRA, and/or making a contribution. |
| Step 3 | Buy real estate, precious metals, private equity, loans, and more! |
Learn more about Traditional IRA Contribution and Traditional IRA Distribution.
For more detailed information, feel free to Contact Us.