traditional IRA

traditional IRA
A tax-deferred individual retirement account that allows annual contributions of up to $2000 for each income earner. Contributions are fully deductible for all individuals who are not active participants in employer-sponsored plans or for plan participants within certain income ranges. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Traditional IRA — A traditional IRA is an individual retirement account (IRA) in the United States. The IRA is held at a custodian institution such as a bank or brokerage, and may be invested in anything that the custodian allows (for instance, a bank may allow… …   Wikipedia

  • Traditional IRA — An individual retirement account (IRA) that allows individuals to direct pretax income, up to specific annual limits, toward investments that can grow tax deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed… …   Investment dictionary

  • IRA Plan — A plan that individuals may establish to arrange and plan for retirement. Generally, an IRA plan allows you to save money and defer taxes until you retire. IRA plans have annual contribution limits that are established by the government and rise… …   Investment dictionary

  • IRA Rollover — A transfer of funds from a retirement account into a Traditional IRA or a Roth IRA. This can occur either through a direct transfer or by a check, which the custodian of the distributing account writes to the account holder who then deposits it… …   Investment dictionary

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  • IRA Required Minimum Distributions — Required Minimum Distributions, often referred to as RMDs, are amounts that the federal government requires you to withdraw annually from traditional IRAs and employer sponsored retirement plansLifetime DistributionsAmericans with IRA plans are… …   Wikipedia

  • Roth IRA — A Roth IRA is an Individual Retirement Account (IRA) allowed under the tax law of the United States. Named for its chief legislative sponsor, Senator William Roth of Delaware, a Roth IRA differs in several significant ways from other… …   Wikipedia

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