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Investing: Difference between revisions
→Traditional IRA
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===Traditional IRA=== | ===Traditional IRA=== | ||
In a traditional IRA, you deposit pre-tax money. | In a traditional IRA, you deposit pre-tax money (see notes). | ||
Thus, your deposit counts as a tax-deduction. | Thus, your deposit counts as a tax-deduction. | ||
You pay taxes when you withdraw your money. | You pay taxes when you withdraw your money. | ||
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* You must start taking required minimum distributions (RMDs) at age 72 | * You must start taking required minimum distributions (RMDs) at age 72 | ||
* No more contributions after age 70.5 | * No more contributions after age 70.5 | ||
* While there are no income limits to contributing to a traditional IRA, there are income limits to deducting from your taxes | |||
** See [https://www.irs.gov/retirement-plans/ira-deduction-limits IRA Deduction Limits] | |||
** To avoid being double taxed on your Traditional IRA contributions, be sure to complete [https://www.irs.gov/forms-pubs/about-form-8606 IRS Form 8606] | |||
===Roth IRA=== | ===Roth IRA=== | ||