Traditional IRAs (Individual Retirement Accounts) offer you a way to contribute and earn tax-deferred money in a retirement savings account.
These popular retirement savings tools provide an incentive to save for retirement in the form of tax deductions for qualified contributions and potentially lower taxes on your earnings when you retire. Keep reading to learn more about Traditional IRAs.
A Traditional IRA is a tax-deferred method of saving for retirement. Your contributions may be eligible for a federal tax deduction. However, this depends on marital status, filing status, earned income and participation in a Qualified Retirement Plan.
The interest on your funds will be tax deferred until you begin to make withdrawals. You can take distributions when you turn 59 ½. At this time, your distributions will be taxed as regular income.
Your Traditional IRA contributions are subject to annual IRS limits. These contributions are tax deferred because you do not pay income tax on earnings from that money until you withdraw it from the account.
You can generally deduct the full amount of your contribution from your taxable income if you do not participate in an employer-sponsored retirement plan. Your deduction may be limited if you do participate in a work retirement plan and your income exceeds certain levels.
In general, individuals who expect to be in a lower tax bracket when they retire benefit the most from a Traditional IRA. Making tax-deductible contributions to a Traditional IRA may lower your tax bill and defer your tax on those earnings until you retire.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
Contact Synchrony Bank to determine if a Traditional IRA is right for you. At Synchrony Bank, your money is insured by FDIC up to $250,000 per depositor for each ownership category.
Call a Synchrony Bank representative today at 1-844-345-5789 to open up a tax deferred IRA.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 07/10/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.