Traditional IRA
A retirement account you fund yourself, independent of any employer. Contributions may be tax-deductible now, the money grows tax-deferred, and you pay income tax on withdrawals in retirement.
By Findley's Finance · Last reviewed: September 2026
Why it matters
The Traditional IRA is the mirror of the Roth: deduct now, pay later. It wins when your tax rate in retirement will be lower than today — the classic case is a high earner who expects to spend less in retirement. For 2026 the contribution limit is $7,500 ($8,600 if 50+), shared across all your IRAs, and the deduction phases out at higher incomes if you or your spouse has a workplace plan.