Traditional and Roth IRAs allow you to save money for retirement, and a Gold IRA is another option to consider. This graphic highlights some of the similarities and differences between these types of IRAs. It depends on what type of IRA it is, whether it be a traditional, Roth, or Gold IRA. Just about anyone can contribute to a traditional IRA, as long as you (or your spouse) receive taxable income and are under 70 and a half years old. However, your contributions are tax-deductible only if you meet certain requirements.
For more information on those qualifications, see Who can contribute to a traditional IRA? One of the main reasons people contribute to a traditional IRA is because of a tax deduction, something they can't get with a Roth IRA. If you choose not to claim the deduction, you will not request the deduction on your federal tax return, but you will choose to make a non-deductible contribution to the IRA by filing the IRS Form 8606, non-deductible IRAs. If neither the owner of the IRA nor his spouse are actively involved, all contributions to the traditional IRA are deductible, regardless of income level. When you have a traditional IRA and an employer-sponsored retirement plan, the IRS can limit the amount of your traditional IRA contributions you can deduct from your taxes.
Once you qualify to make a contribution to a traditional IRA, the IRA owner can deduct part or all of the contribution.
