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Review:

Traditional Ira

overall review score: 4.5
score is between 0 and 5
A traditional Individual Retirement Account (IRA) is a tax-deferred retirement savings account that allows individuals to save for retirement with tax-deductible contributions.

Key Features

  • Tax-deferred growth on contributions and earnings
  • Contributions may be tax-deductible depending on income level and other factors
  • Withdrawals are taxed as ordinary income
  • Required minimum distributions (RMDs) starting at age 72

Pros

  • Tax-deferred growth can help savings grow faster
  • Contributions may be tax-deductible, providing immediate tax benefits
  • Flexibility in investment options, including stocks, bonds, and mutual funds

Cons

  • Penalties for early withdrawals before age 59½
  • Required minimum distributions may limit flexibility in managing retirement income

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Last updated: Sat, Feb 1, 2025, 04:14:28 AM UTC