01.Core Concepts

A traditional IRA allows workers to take a tax deduction for part or all of their IRA contributions The investment income accumulates income-tax free on a tax-deferred basis Distributions are taxed as ordinary income The participant must have earned income during the year, and must be under age 70½ For 2015, the maximum annual contribution is $5,500 or 100% of taxable compensation, whichever is less A full deduction for IRA contributions is allowed under certain circumstances ‹#›