What Is a Traditional IRA?
A Traditional IRA is an individual retirement account that may offer a tax deduction for eligible contributions, with taxes generally due when money is withdrawn.
How it works
You contribute money to an IRA and choose investments available through the account provider. Contributions may be deductible depending on income, filing status, and workplace plan coverage. Withdrawals are generally taxable as ordinary income.
When it can fit
A Traditional IRA may fit someone who values a possible deduction today and expects a lower tax rate in retirement. Deductibility and current contribution limits must be checked for the tax year.
Traditional IRA vs Roth IRA
The main difference is tax timing: Traditional IRA contributions may receive a deduction now and withdrawals are generally taxable; Roth IRA contributions are after-tax and qualified withdrawals can be tax-free.
Frequently asked questions
Are Traditional IRA contributions deductible?
They may be, but the deduction can be limited by income and workplace retirement-plan coverage.
When are Traditional IRA withdrawals taxed?
Withdrawals are generally included in taxable income, with special rules for nondeductible contributions and exceptions.
Sources
Gleefund explains general retirement-account concepts and provides estimates. It does not provide financial, tax, or legal advice. See our disclaimer and methodology. Check the current IRS rules before acting.
Figures current as of 2026-09-25. Found an error? Contact us.