Traditional IRA

A traditional IRA allows you to make contributions with money you may be able to deduct on your tax return. Earnings potentially grow tax-deferred until you withdraw them in retirement.
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Why choose a Firstrade Traditional IRA?

  • No account fees or minimum to open an account
  • Earnings can grow federal tax-deferred
  • Get guidance choosing from a wide range of investment options
  • $0 commission fees on online trades
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Traditional IRA Rules

Tax Advantages
  • Tax-deductible* contributions
  • Tax-deferred until you begin withdrawing funds
  • Taxable withdrawals
Eligibility Requirements

To make a full contribution, you must have a Modified Adjusted Gross Income of:

For tax year 2023:
Single: Less than $116,000
Married filing jointly: Less than $218,000

For tax year 2024:
Single: Less than $123,000
Married filing jointly: Less than $230,000

Contribution Limits Per Year

For tax year 2023:
$6,500
$7,500 if age 50 or older

For tax year 2024:
$7,000
$8,000 if age 50 or older

Withdrawals
  • All earnings and deductible contributions are taxable upon withdrawal.
  • Penalties will be incurred if withdrawals are taken before age 59½ yrs., or if minimum withdrawals are not taken by April 1st of the year following the year age 72 yrs. is reached.
  • Minimum distributions must begin at age 72 yrs.
* Subject to certain restrictions. Please consult with your tax advisor.

More Information

Learn about IRAs
Learn about the basics of retirement, from types of accounts available to taking minimum required distributions (MRDs).
How to rollover an old 401(k) to Firstrade
Step-by-step guide on how to rollover an old 401(k) to Firstrade.