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Traditional IRA retirement accounts offer two distinct advantages or incentives to encourage individuals to save for their retirement. First, contributions for these retirement accounts may be tax deductible. Second, earnings are tax deferred; therefore, you do not pay taxes on earnings until you begin taking withdrawals, usually after you retire and possibly are in a lower tax bracket. These tax advantages make the Traditional IRA a powerful tool in creating a balanced, long-term savings plan.
Certain documents must be completed to establish valid Traditional IRA retirement accounts. The most important of which is the plan agreement because it sets forth the contractual terms and conditions of the retirement accounts. The trustee/custodian must be an entity approved by the IRS such as a trust company, bank, or federally insured credit union.
A Traditional IRA is not a SIMPLE IRA or a Roth IRA. Consult with our Customer Service Department for additional details on setting up a traditional IRA.
Who Can Establish a Traditional IRA
Contribution Guidelines
Distribution Requirements
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