Traditional IRAs offer two distinct advantages over other types of investment accounts. First, Traditional IRAs allow your savings to grow tax deferred until withdrawn. Secondly, contributions to a Traditional IRA may be tax deductible.
Each tax year, you are allowed to contribute the lesser of 100% of your earned income or the contribution limits set by the IRS. If you are married and filing a joint return, you and your spouse can each contribute up to the maximum limit. If you are under the age of 70 1⁄2 and have earned income, you may establish and contribute to a Traditional IRA.
Traditional IRA contributions are fully deductible unless you are an "active participant" in an employer-sponsored retirement plan. If you are an active participant in an employer's plan, the deductibility of an IRA contribution will depend on your adjusted gross income (AGI) and your spouse's, if married.
You will be required to take minimum distributions from your account beginning at age 70 1⁄2. You can begin taking distributions without penalties at age 59 1⁄2. Distributions that include deductible contributions and/or earnings are taxed as ordinary income.
A Stifel self-directed IRA provides you the versatility and freedom to choose the investment vehicles that meet your financial needs.