traditional ira
3 questions
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What are the IRA contribution limits?
In 2026, you can contribute up to $7,500 per year to an IRA if you're under 50, or $8,600 if you're 50 or older. This limit is shared across all your IRAs — you cannot contribute $7,500 to a Roth and another $7,500 to a traditional IRA in the same year.
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What is a required minimum distribution (RMD)?
A required minimum distribution (RMD) is a mandatory annual withdrawal the IRS requires you to take from traditional IRAs, SEP IRAs, and most 401k accounts starting at age 73. The amount is calculated each year based on your account balance and IRS life expectancy tables — failing to take your RMD triggers a 25% penalty on the amount you should have withdrawn.
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What is a Roth IRA vs a traditional IRA?
A Roth IRA uses after-tax dollars and grows tax-free — you pay no tax on withdrawals in retirement. A traditional IRA gives you a tax deduction now and you pay taxes on withdrawal. Choose Roth if you expect to be in a higher tax bracket in retirement; choose traditional if you want the deduction today.