A Traditional IRA is a tax-advantaged arrangement that allows earnings and deductible contributions to grow tax-deferred. That means you don’t pay income taxes on the earnings and deductible contributions of your IRA until you begin taking withdrawals, usually after you retire.
Contributions may be deductible from your gross income on your federal income tax return for the year in which the contributions are made. Earnings grow on a tax-deferred basis. Deductible contributions and earnings are subject to federal income tax when withdrawn.
You must not attain the age of 70½ during the year you contribute to a Traditional IRA. You must also have earned income (compensation) in order to contribute to a Traditional IRA.
If you are age 50 or older, you may make additional “catch-up” contributions to your IRA. See our Trust Officers to plan for your own IRA.