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Traditional IRA

An individual retirement account with pre-tax contributions (deductible up to income limits).

Why it matters

2025 limit: $7,000 (plus $1,000 catch-up for 50+). Deductibility phases out at higher incomes if you or your spouse has a workplace retirement plan. All withdrawals are taxed as ordinary income. RMDs begin at age 73.

See also

Educational only — not financial, tax, or legal advice.