Login Open Account

Traditional IRA Contributions

Benefits of Traditional IRA Contributions

Traditional IRAs allow you to deduct up to your full contribution amount from your income for tax purposes. For instance, if you earn $50,000 but also make a $5,000 contribution to your Traditional IRA, you'll only have to pay taxes on $45,000 for the year.

Contribution Deadlines & Annual Limits

Tax Year Annual Contribution Limit
(below age 50)
Annual Contribution Limit
(age 50 or above)
Contribution Deadline
2021 $6,000 $7,000 4/15/2022
2020 $6,000 $7,000 4/15/2021

Cash or assets that you transfer or roll from another qualified plan will not count against these annual limits. You can make a contribution to a new Traditional IRA for a given tax year even if you open the account in the following calendar year.

EXAMPLE: You open a Traditional IRA on February 1, 2021. You can still make 2020 contributions until April 152021 even though your account was not open during the 2020 calendar year.

Other Key Considerations

As of 2021, you may contribute to a Traditional IRA at any age, as long as you earn verifiable and taxable income to garner the tax-deferred benefits of Traditional IRA contributions. Your modified adjusted gross income (MAGI) may affect the deductibility of your contributions. Click here for more information from the IRS.

Consult with your accountant or tax professional for more information about how your MAGI may affect your Traditional IRA contributions.

IRA Education

Online Account Access

The premier online platform for self-directed investing and 24/7 account management.

Get Started 

Investor's Guide to Traditional IRAs

Learn the basics and reclaim control of your future through self-direction.

Self-Directed IRA Investing Guide
Download Guide 

Contribution Rules & Strategies

Find an edge before you even invest. Enjoy this free webinar to find out how.

video cover image
View Webinar