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Traditional IRA
Traditional IRAs have attractive features that make them popular investments. Traditional IRAs are tax-deferred savings accounts. Investors who meet certain income guidelines can deduct their IRA contributions too. Spouses may also be eligible for fully deductible contributions. Withdrawals from a Traditional IRA, which can be made starting at age 59½, are generally taxed as ordinary income.
Enactment of the federal Economic Growth and Tax Relief Reconciliation Act increased the maximum annual contribution to Traditional IRAs:
| Year |
Amount |
| 2005 - 2007 |
$4,000 |
| 2008 and beyond |
$5,000 |
Investors can deposit money into a Traditional IRA until age 70½, and withdrawals must begin at age 70½.
Visit your Johnson Bank representative or call today to learn if an IRA is the best investment for you.
Use our Roth vs. Traditional IRA Calculator to compare the benefits of each type of IRA.
Financial Information Center Articles:
Retirement Planning Choices
Traditional IRA
Roth IRA
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