Traditional IRA
A traditional IRA is an individual retirement account (IRA) in the United States. As with all IRAs, there are specific elegibility and filing status requirements mandated by the U.S. Internal Revenue Service. Contributions to a traditional IRA are made pre-tax, and earnings are tax free, but withdrawals are subject to tax. This is in contrast to a Roth IRA, in which contributions are made post-tax, but withdrawals are tax free. The traditional IRA also has more restrictions on withdrawals than a Roth IRA.
Related Topics:
Individual retirement account - United States - U.S. Internal Revenue Service - Roth IRA
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