What is a Traditional IRA?
A Traditional Individual Retirement Account (IRA) allows a client to invest in stocks, bonds, mutual funds, certificates of deposit, ETFs index funds etc. using pre-tax dollars.
That means the client does not pay income taxes on the money they are using to invest until they withdraw the money from the account. The minimum age to withdraw money from a Traditional IRA is 59 ½ years old.
In retirement, the client will pay income taxes on the amount they are withdrawing at their ordinary tax rate.
With Traditional IRAs, the IRS requires people begin taking Required Minimum Distributions (RMDs) from their account beginning at age 70 ½.
Traditional IRAs (and Roth IRAs) have yearly contribution limits of $5,500 ($6,500 for people over the age of 50).
Related questions View all Tips & Guidance
-
Q. The New Stash Banking—What’s New and What Changed
Beginning in fall 2022, Stash will be switching banking providers. This move will provide more autonomy for Stash in banking decisions, and will provide more benefits to customers. You can read about our decision here. You may be wondering—what steps do I need to take after I’ve transitioned my banking account?…
-
Q. Need to upload documents to verify your identity when opening a Stash account?
During the course of signing up for your new Stash account, we may ask you for proof of identity via either your driver’s license or passport. Why do we need this information? The USA Patriot Act requires us to verify your identity—it helps us keep all 6+ million Stashers safe,…
-
Q. What is happening to my Stash Banking Account issued by Green Dot Bank?
What is happening to my Stash banking account issued by Green Dot Bank? We are switching to a new banking partner. The transition is easy. We’ll transfer your funds automatically in just a few minutes. If you do not complete the transition,…
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.
Ask your question
