Mountain West IRA – Traditional IRA
- You are eligible to deduct your contribution now and you anticipate your tax rate at retirement to be lower than your current tax rate.
- You need a tax deduction, lowering your current tax bill. (Some investors still contribute to an IRA account even without the tax deduction).
- You are looking for a larger choice of investment options for your funds.
If you are eligible to contribute to an IRA, the amount you can deduct from your taxes will depend on whether you (or, in some cases, your spouse) are an active participant in a retirement plan at work.
If you have earned income and want to save for retirement on a tax-deferred basis, you may contribute to a self-directed traditional IRA until you are 70½ years of age.
The most common technique to funding a self-directed traditional IRA is through making a contribution to your account. You may also roll over or transfer funds from an existing employer plan, such as a 401(k), TSA, 403(b), 457(b) defined contribution plan, or other pension plan or traditional IRA. If your current traditional IRA does not allow self-direction, you may also transfer those funds to a Mountain West self-directed traditional IRA so that you may choose your investments.
A traditional individual retirement account is the oldest and most common type of retirement plan. A self-directed traditional IRA allows you to select the investments that you choose within your retirement plan.
Traditional IRA Annual Contribution Limits and Catch Up Contributions
|Traditional IRA Contribution Limits|
|Up to Age 50||$6,000|
|Catch Up Contribution Provision Age 50+||$1,000|
|Total Contributions If Age 50+||$7,000|