What is a Traditional IRA?

A Traditional IRA is an Individual Retirement Arrangement, more commonly known as an Individual Retirement Account, which allows individuals to put aside tax-deferred money for retirement. Eligible contributions are made from pretax dollars, meaning they are tax-deductible, and any interest, capital gains, or dividend income from the original funds will grow tax-deferred upon withdrawal.

With an Entrust self-directed Traditional IRA, an individual may have the ability to direct their funds towards a wide variety of investments, including alternatives like real estate and precious metals. A self-directed account is different than a standard account because it allows you to have more investment freedom. 

 

Important features of a Traditional IRA

  • Potential tax-deductible contributions
  • Tax-deferred earnings
  • Pay taxes when you take distributions on taxable amounts
  • Required minimum distributions begin at age 70 ½

 

What are the eligibility requirements for a Traditional IRA?

An individual can open and make contributions to a Traditional IRA if both of the following requirements are met:

  1. Taxable compensation has been received during the year.
  2. 70 1/2 years of age has not been reached by the end of the year.

If an individual and their spouse have received compensation during the year, and have not reached 70 1/2 years of age, an IRA may be established for each.  However, if filing a joint tax return, only one spouse is required to receive compensation and is allowed to contribute on behalf of the other spouse.


Is a self-directed Traditional IRA the right plan for me?

  • Do you want to make tax-deductible contributions to a retirement account?
  • Do you want to supplement the retirement saving options offered by your employer?
  • Is your income within the income limits for contributing?
  • Do you want the freedom to invest in what you know, whether it's stocks and bonds or real estate?
  • Do you want to diversify your retirement portfolio with alternative investments?

If you answered 'yes' to all or most of these questions, a self-directed Traditional IRA may be a good choice for you.

 

Transfer or Rollover your funds to Entrust to get started

If your current Traditional IRA does not allow self-direction, you can easily transfer funds to an Entrust self-directed Traditional IRA and gain access to a wide range of alternative investments, from real estate and gold to private stock and small business. You may also convert a 401(k) with a former employer to a self-directed Traditional IRA. Contact us today to get started.


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Before making contributions to a Traditional IRA, learn the contribution limits that apply:

Click here to view the 2017-2018 Traditional IRA Contribution Limits