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Glossary

Knowledge for investors of all skill levels

Traditional IRA

A Traditional IRA is a type of Individual Retirement Account (IRA) that allows individuals to invest in assets using pre-tax dollars. This means that contributions made to a Traditional IRA are generally tax-deductible, which can reduce an individual's taxable income for the year.

However, when an individual takes a qualified distribution in retirement they will pay ordinary income tax and they must start taking distributions after age 73