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This is an educational estimate, not financial advice.
What this means for you
Enter your info and hit Calculate to see your projected balance adjusted for inflation.
About Traditional IRAs
A Traditional IRA (Individual Retirement Account) is a tax-advantaged retirement account that allows you to save for retirement independently of your employer. Contributions may be tax-deductible depending on your income and whether you have access to a workplace retirement plan.
Key Benefits:
- Tax Deductions: Contributions may be deductible on your tax return
- Tax-Deferred Growth: Investments grow tax-free until withdrawal
- Flexibility: Open and contribute regardless of employer
- Investment Options: Wide range of investment choices
2024 IRA Contribution Limits:
- Under 50: $7,000 per year
- 50 and over: $8,000 per year (includes $1,000 catch-up contribution)
Compare IRA & 401(k) Providers
| Provider | Account Types | Typical Fees | |
|---|---|---|---|
| Provider A | IRA, Roth IRA | 0.25%–0.40% | Open account |
| Provider B | IRA, 401(k) rollovers | $0 trading, ETFs | Open account |
Disclosure: we may earn a commission if you sign up via links on this page.
Texas Retirement Tips
- Check Texas-specific tax treatment for retirement account withdrawals.
- Look into any state-sponsored retirement plans or special rules for Texas residents.
- Benchmark your savings rate vs. Texas median income if available.
- Consider Texas cost of living when planning your retirement budget.
FAQ
What is the maximum IRA contribution for 2024?
For 2024, the maximum IRA contribution is $7,000 for those under 50, and $8,000 for those 50 and older (including the $1,000 catch-up contribution).
Are IRA contributions tax-deductible?
Traditional IRA contributions may be tax-deductible depending on your income, tax filing status, and whether you or your spouse have access to a workplace retirement plan.
When can I withdraw from my Traditional IRA?
You can withdraw from a Traditional IRA penalty-free starting at age 59½, but withdrawals are taxed as ordinary income. Required minimum distributions (RMDs) begin at age 73.