Prepare for retirement with a Traditional IRA
Anyone with taxable compensation can contribute to a Traditional IRA. Your contributions may be tax-deductible, and earnings, if any, grow tax-deferred. Generally, your earnings and any previously deducted contributions will be included in your taxable income when you withdraw your money.
Learn more about Traditional IRA accounts
What is a Traditional IRA?
A Traditional IRA is a retirement account where your contributions may either be tax-deductible or non-deductible, and your earnings and any previously deducted contributions will be included in your taxable income when you withdraw your money.
Who is Traditional IRA for?
Anyone with taxable compensation can open a Traditional IRA, it's one of the most common retirement accounts.
Why invest in a Traditional IRA?
A key advantage of a Traditional IRA is the potential ability to reduce your taxable income as you save for retirement.
Traditional IRA with J.P. Morgan
- Our J.P. Morgan Advisors and online investing tools can help you prioritize your long-term investing and retirement goals.
- Open, access and manage a J.P. Morgan Traditional IRA via desktop, mobile or meet with a J.P. Morgan Advisor today.
- After opening up the right IRA for your needs, you can choose from a wide range of investment products, such as mutual funds, stocks, ETFs and bonds.
- When it’s time to withdraw from your Traditional IRA, we’re here to help.
JPMorgan Chase and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting professionals before engaging in any transaction.
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Work 1:1 with a dedicated advisor in your local community to create a personalized financial strategy and build a custom investment portfolio.
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Roll over your 401(k)
Consider moving your employer-sponsored retirement plan account into a J.P. Morgan IRA.
Retirement guides
Wherever you are in your retirement planning journey, there’s always a best next step. Explore our retirement guides and get a sense of what you could be focusing on.
Retirement calculators
Knowing where you are today is an important step toward planning for your future. Run your numbers with our calculators to see how your current plan is working toward your goals.
Frequently Asked Questions
A Traditional IRA is a retirement account where your contributions may either be tax-deductible or non-deductible, and your earnings and any previously deducted contributions will be included in your taxable income when you withdraw your money.
Traditional IRA contributions may be tax-deductible for the year for which they are made. Deductibility for a Traditional IRA contribution may be limited based on your income tax filing status, if your modified adjusted gross income (or “MAGI”) exceeds certain levels, and if you or your spouse are covered by a workplace retirement plan.
The IRS sets annual contribution limits for Traditional IRAs and Roth IRAs. For 2023, the annual maximum is $6,500 if you are under the age of 50, or $7,500 if you are 50 or above. Learn more.
While eligibility for a tax deduction is dependent on income and involvement in other employer plans, you can contribute at any age if you (or your spouse, if filing jointly) have taxable compensation.
You may withdraw from a Traditional IRA at any time; however, withdrawals from your Traditional IRA are includible in your taxable income and if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawal unless you qualify for an exception.
A rollover IRA is an IRA that is set up to accept assets from an employer-sponsored plan like a 401(k) or 403(b) once you have a qualifying distributable event (such as changing employers or retiring). The rollover IRA could be either a Traditional or Roth IRA depending on the circumstances.
Traditional and Roth IRAs both offer a way to save for retirement that give you tax advantages.
A Traditional IRA is an individual retirement account where your contributions may be tax-deductible, and you pay taxes when you withdraw your money. Potential earnings grow tax-deferred until withdrawal. Traditional IRAs are subject to the IRS’ required minimum distribution, or RMD, rules.
A Roth IRA is an individual retirement account where you contribute after-tax dollars, and you don’t have to pay federal tax on “qualified distributions,” including potential earnings, if certain criteria are met. Roth IRAs of original account owners are not subject to the IRS’ RMD rules. Learn more about their key differences and how each of these IRAs may meet your needs.
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