A traditional IRA is the "original" IRA. It is available to anyone, regardless of adjusted gross income. Contributions to a traditional IRA may be deductible from current federal taxable income. Taxes must be paid upon withdrawal of any deductible contributions plus earnings and on the earnings from your non-deductible contributions.
As you can see, part of the attractiveness of a traditional IRA is the potential to take a tax deduction from your current federal income on your contributions. You can fully deduct your contributions to your traditional IRA from your federal taxable income if:
You can partially deduct your contribution to a traditional IRA even if you participate in an employer-sponsored retirement plan if your AGI is between $63,000 and $73,000 in 2018 for single taxpayers. For married taxpayers filing jointly it is between $101,000 and $121,000 in 2018.
Different rules apply if you are married and file separate income tax returns. Consult your tax advisor for more information.
Tax services are not offered through, or supervised by Lincoln Investment.
Today, you may no longer rely on just your company pension and Social Security to provide adequate funds for retirement. You should consider developing a retirement investment plan that makes maximum use of available tax benefits, so that your retirement assets will grow more quickly.
Lincoln Investment has specialized since 1968 in providing retirement planning services. A Lincoln Investment financial advisor looks forward to working with you to explore the opportunities offered by a traditional IRA.