Traditional IRA Account
Introduction
A Traditional IRA may be opened by any individual with taxable compensation and who wants to save for retirement with tax advantages.
Contributions are made in cash and are "pre-tax", meaning the contribution amount can be taken as a tax deduction for that tax year.
Cash contributions can then buy assets (stocks, real estate, gold, etc.), and earnings on those assets are tax-deferred.
Earnings within your IRA do not effect your personal taxes.
After age 59.5, distributions from a Traditional IRA are taxed at your current income tax rate.
A Traditional IRA is the oldest and most common type of retirement plan.
Self-Directed IRA Educational Videos
Foundations of Self-Directed IRAs
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
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.
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