A traditional IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that allows individuals to contribute pre-tax dollars, with the potential for tax-deferred growth until withdrawals in retirement.

Anyone with earned income, regardless of age, can contribute to a traditional IRA. However, the tax deductibility of contributions depends on income level and participation in an employer-sponsored retirement plan.

For 2024, the annual contribution limit for a traditional IRA is $6,500 for individuals under 50. Those aged 50 or older can contribute an additional $1,000 as a catch-up contribution, for a total of $7,500.

Contributions to a traditional IRA may be tax-deductible depending on your income, filing status, and whether you or your spouse are covered by an employer-sponsored retirement plan. Check IRS guidelines for specific deduction limits.

Required Minimum Distributions (RMDs) must begin by April 1 of the year following the year you turn 73 (for individuals born after January 1, 1951). RMDs are mandatory and subject to income tax.

Yes, you can convert a traditional IRA to a Roth IRA through a process called a Roth conversion. However, you will need to pay income taxes on the converted amount in the year of conversion.