Traditional IRARoth IRA
Overview
Contributions are pre-tax dollars (tax-deductible), but latter withdrawals for retirement are to be taxed. This is an excellent way to increase your tax-deferred savings.If you expect to be in a higher tax-bracket later in life, a Roth IRA account might be more suitable. Roth IRA contributions are already taxed (not-tax-deductible), but earnings and qualified withdrawals are tax-free.
Tax Advantages
  • Tax-deductible* contributions
  • Tax-deferred until you begin withdrawing funds
  • Taxable withdrawals
  • Not tax-deductible contributions
  • Tax-free* earnings
  • Qualified withdrawals are tax-free
Contribution Limits Per Year
For tax year 2025
$7,000;
$8,000 if age 50 or older

For tax year 2026
$7,500;
$8,600 if age 50 or older		For tax year 2025
$7,000;
$8,000 if age 50 or older

For tax year 2026
$7,500;
$8,600 if age 50 or older

Roth Conversion (converting a Traditional IRA to a Roth IRA) is available. *
Withdrawals
  • 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 73 yrs. is reached
  • Minimum distributions must begin at age 73 yrs.
  • Contributions can be withdrawn at any time without taxes or penalties
  • Earnings can be withdrawn with no taxes or penalties as long as you are at least 59½ yrs. of age and the account had been open for at least 5 years
  • No distribution requirements
Open an IRA Account
* Subject to certain restrictions. Please consult with your tax advisor.

More Information

Making contributions to your IRA
Already have a Firstrade IRA? Learn how to make a contribution.