| Regardless of age, all adults should be thinking about | | | | The maximum contribution for those who are 50 and |
| having enough money for retirement. Preparing for | | | | older is $6,000. In order to get your yearly deductions, |
| retirement is much simpler for those individuals that | | | | all contributions must be made by the April 15 tax |
| contribute to a Traditional IRA. In order to help you | | | | deadline. This simply means that for the current year |
| prepare for retirement, this IRA plans gives you the | | | | you always have until your income tax information is |
| ability to contribute small amounts over time. | | | | due to contribute. These are some of the benefits of |
| The Traditional IRA retirement plan is readily available | | | | the Traditional IRA: |
| to those individuals who meet a couple of specific | | | | * Benefits such as the great tax deductions are |
| requirements. Participants must have a source of | | | | effective immediately. |
| documented income such as wages, a set salary or | | | | * Regardless of your income if you meet the guidelines |
| bonuses. In order to be able to build an IRA, all | | | | you can open a Traditional IRA. |
| participants must have a source of income in order to | | | | * Most people see a decrease in their income when |
| contribute. You must have a viable source of income | | | | they retire and they move to a lower tax bracket |
| in order to contribute to a Traditional IRA. If you are | | | | which results in lower taxation. |
| over the age of 70 1/2, you are no longer eligible to | | | | * Individuals should consider their options when trying to |
| contribute. | | | | choose between a Traditional or Roth IRA and a 401K |
| Lucrative tax benefits are just one of the perks that | | | | plan. |
| those who qualify for a regular IRA will experience. | | | | It is important to note that choosing the Traditional IRA |
| Traditional IRA contributions are tax deferred. Any | | | | plan over other alternatives can lead to some |
| money that you put into your fund is not subject to | | | | disadvantages: |
| income taxes. You do not pay taxes on the portion of | | | | * 59 1/2 is the age that you can withdraw from a |
| your income that you put into the fund. When | | | | Traditional IRA and not be penalized. |
| individuals start withdrawing their money, which can be | | | | * Individuals regardless of their needs or wants must |
| no later than 70 1/2, their contributions begin to be | | | | begin taking their money out at the age 70 1/2 or the |
| taxed. At this age most people's income has | | | | IRS can take part of it. |
| decreased and they fall to a lower tax bracket. | | | | * Normal contribution deductions may be in jeopardy if |
| Income transferred into a Traditional IRA account is | | | | you have a retirement plan available at your job. |
| considered deductible income. | | | | When you choose a retirement plan it is extremely |
| You should be aware that there is a limit to the | | | | important to look at the criteria in order to fit your |
| amount of money that you can contribute each year. | | | | specific needs. It may be better for you to stick with a |
| $5,000 is the maximum contribution for ages 49 and | | | | Traditional IRA, or split your money between a Roth |
| younger. | | | | IRA and an employer retirement plan. |