An Individual Retirement Account (IRA) is essentially a trust or custodial account that permits people to save for retirement with some tax benefits. A Traditional IRA, also known as an Individual Retirement Account, is a type of retirement savings account that provides tax benefits to encourage retirement saving. Here are some essential aspects:

• Contributions to a Traditional IRA can be tax-deductible depending on your income and if you or your spouse are covered by a retirement plan at work. By contributing, you can potentially lower your taxable income for that year.
• The accounts' investments are tax-deferred, preventing you from paying taxes on any earnings (such as interest, dividends, or capital gains) until you withdraw the money, which is usually during retirement.
• Once you reach 73 years old, you must start taking minimum distributions from your Traditional IRA every year. Ordinary income tax is applied to these withdrawals.

Individuals who want to reduce their current tax burden while also saving for the future find it a popular option.

Individual Retirement Accounts (IRAs) have a maximum contribution limit of 2024 as follows:

• Individuals under the age of 50 qualify for $7,000 in benefits.
• Individuals 50 and over can receive $8,000, which includes a $1,000 catch-up contribution.