A traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. Unlike traditional IRAs, contributions to Roth IRAs are never tax-deductible. However, you can withdraw the money in a Roth IRA, including earnings, tax- and penalty-free if certain tests are met. Ask an IRA specialist what the maximum combined contribution limits are to a Roth and traditional IRA.

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