Traditional IRA

Contributions are tax-deductible but with eligibility requirements based on income, filing status, and availability of other retirement plans (mandated by the Internal Revenue Service).

[3] Withdrawals are subject to federal income tax (see below for details), and have more restrictions than a Roth IRA.

[7] Contradictory benefit claims include: All United States income taxpayers can make IRA contributions and defer the taxation on the earnings.

Except as otherwise noted, all columns below are for IRA contributors who participate in an employer-sponsored retirement plan.

The lower number represents the point at which the taxpayer is still allowed to deduct the entire maximum yearly contribution.

Note that people who are married and lived together, but who file separately, are only allowed to deduct a relatively small amount.

With recent legislation, as part of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the modified AGI requirement of $100,000 and not be married filing separately criteria were removed in 2010.

The participant would then have to make a rollover contribution to the receiving financial institution within 60 days in order for the funds to retain their IRA status.