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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Open an IRA

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

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:
$7,500 if age 50 or older

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

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