- A Traditional IRA helps you save for your retirement. Your contributions may be tax deductible*.
- Early withdrawals under the age of 59½ are subject to a 10% penalty unless disabled or paying for qualified expenses (first home, education).
- Mandatory distributions must occur at age 72 for individuals who turn 70½ in the calendar year 2020.
- If you turned age 70½ in 2019 and have already begun taking your Required Minimum Distributions (RMDs), you should generally continue to take your RMDs. The IRS may provide further guidance on this point, so you might want to speak with your tax advisor regarding any 2020 distributions.
- You can continue to contribute to your traditional IRA past age 70½ as long as you are still working.
- Contributions may be tax deductible*.
- Interest grows tax-deferred until withdrawn.
- Funds may be used to purchase a first home ($10,000 lifetime maximum)*.
- Funds may be used to pay for qualifying education expenses.