Printer Friendly

Traditional IRA

Traditional IRAs are tax-deferred retirement savings vehicles for individual investors. Anyone under the age of 70½ who has earned income (or the non-working spouse of such an individual) can make a Traditional IRA contribution. The only question is whether or not the contribution can be deducted. This hinges on whether the individual is an active participant in an employer-sponsored retirement plan or not. Legend’s IRA Roadmap can help you determine whether you (or your non-working spouse) are eligible to deduct a Traditional IRA contribution. If you cannot deduct a contribution, it may make more sense to contribute to a Roth IRA if your adjusted gross income (AGI) is within the Roth eligibility limits.

Traditional IRA accounts offer:
  • Pre-tax Savings – Traditional IRA account contributions are tax deductible for eligible investors.
  • Tax-deferred Growth Potential – Taxes on IRA investment earnings are deferred, meaning you need not pay taxes on anything that your IRA earns until you retire or take a distribution. For many people, that time is years away, allowing for long-term investment growth. Withdrawals are taxed as ordinary income in the year distributed, which means that a traditional IRA may work best if your tax rate is higher today than you expect it to be in the future.
  • Distributions – IRA assets can be withdrawn without penalty after age 59½.1 Upon withdrawal, ordinary income taxes will apply. Distributions must begin no later than April 1 of the calendar year following the calendar year in which you attain age 70½.
  • Many Investment Options – A wide variety of investment options are available, including fixed and variable annuities and mutual funds.
  • Professional Investment Management – Legend IRA accountholders have the opportunity to participate in Legend Advisory Corporation’s professional investment management programs. These programs offer diversified2 asset allocation portfolios that are managed by a team of investment professionals who monitor world markets in an effort to maximize returns while attempting to reduce risk.
I'd like to receive more information on this topic 


1Distributions from a traditional retirement account are subject to ordinary income taxes in the year distributed. Distributions prior to age 59½ may incur an additional 10% penalty.

2Diversification does not assure a profit or protect against market loss.

Legend Equities Corporation and its affiliates do not provide tax information or advice.

Before investing in a mutual fund or variable annuity, consider its investment objectives, risks, charges and expenses carefully. The prospectus for a mutual fund or the policy prospectus and prospectuses for the underlying investments of a variable annuity, which contain this and other information, can be obtained by contacting Legend Equities Corporation. Please read the prospectus or prospectuses carefully before you invest or send money.