What is a Traditional IRA?

Please Note: LSW cannot give legal, tax, or accounting advice. The following general information is our understanding of current tax laws and regulations for Individual Retirement Accounts. Please consult your own attorney, accountant, or tax advisor for advice about your own situation.

A Traditional IRA (Individual Retirement Account) is a self-sponsored retirement savings plan. Contributions to an IRA may or may not be tax-deductible depending on your adjusted gross income. Consult your tax advisor to answer questions about your eligibility for tax deductions. Beginning January 2007, you may contribute up to the lesser of 100% of compensation or $4,000. Non-working spouses may also contribute up to $4,000 to an IRA. For individuals age 50+, the contribution limit is increased by $500 from 2002 through 2005 and by $1,000 thereafter.

Updated: Monday, December 03, 2007 11:47:24 PM  Eastern