A Traditional IRA is a retirement savings account in which you invest pre-tax dollars and your money grows on a tax-deferred basis, meaning you will not pay taxes on your earnings until you withdraw your funds.
IRA stands for “Individual Retirement Account.” The word “individual” is key here — an IRA is a retirement savings account you open yourself rather than through an employer.
Here are a few things you should know about Traditional IRAs:
The amount of the required minimum distribution is based on your age and your account balance. You can calculate RMDs at IRS.gov.