Traditional IRAs

Traditional IRAs are also good also but somewhat limited in nature

  • Contributions are made on a pre-tax basis like 401Ks
  • One pays the taxes upon withdrawing
  • There is an early withdrawl penalty of 10%
  • There are maximum contribution limits: $6000 in 2019 ($7000 if over 50)
  • Use these as a supplement to 401Ks, Roth IRAs etc.
  • You can read more about these at investment firm sites like Fidelity

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