Traditional IRAs

Take advantage of tax-deferred growth for your retirement investments while lowering your taxable income. 

What is a traditional IRA?

Benefits of a traditional IRA

Tax-deferred growth

You won't pay taxes on deductible contributions or investment gains until you withdraw the money in retirement. This can help your savings grow faster.

Traditional IRA income limits

There are no income limits for contributing to a traditional IRA. However, to be able to deduct contributions from your taxes, your modified adjusted gross income must be less than the annual limit set by the IRS.

It costs $0 to open a traditional IRA

Traditional IRA rules and considerations

Contribution limits

For 2024 and 2025, the maximum annual contribution limit for a traditional IRA is $7,000 for those under age 50 and $8,000 for those age 50 and older.

No age limit on contributions

You can make contributions to a traditional IRA regardless of your age as long as you have earned income.

Required minimum distributions

You'll need to take required minimum distributions (RMDs) from your account by April 1st after you turn 73.3

Common RMD questions and answers

Taxable withdrawals

Withdrawals from traditional IRAs are taxed as ordinary income. There may be penalties for early withdrawals. Check with a tax professional for more information.

Could you be saving more on your taxes?

Discover whether you qualify for traditional IRA tax deductions. Your modified adjusted gross income (MAGI) must be less than the annual limit set by the IRS.

Traditional IRA options

Some investors choose a do-it-yourself approach. Others prefer a little extra guidance.

Build your own portfolio

Compare and choose from our competitive,2 low-cost mutual funds and ETFs to help save for your retirement.

Build your own portfolio

Compare and choose from our competitive,2 low-cost mutual funds and ETFs to help save for your retirement.

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Explore professional advice

Plan your retirement with judgement-free advice from a company that’s built to prioritize your needs.

Explore professional advice

Plan your retirement with judgement-free advice from a company that’s built to prioritize your needs.

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Start saving for retirement

Need more information? Learn how to open a Vanguard account

Frequently asked questions

A traditional IRA is a personal retirement account you open and fund yourself, with potential tax-deductible contributions and tax-deferred growth. A 401(k) is a workplace retirement plan with higher contribution limits that often includes employer matching contributions.

Contributions to a traditional IRA are tax-deductible in the year they are made, which can reduce your current taxable income. Withdrawals in retirement are taxed as ordinary income. Whether your contributions are deductible may depend on your income level and whether you or your spouse are covered by a retirement plan at work.

No. While they share some similarities, a SIMPLE IRA is designed for small business owners and their employees, while a traditional IRA is designed for individuals. They have different contribution types and limits.

1Deductions can vary according to your modified adjusted gross income (MAGI).

2For the 10-year period ended June 30, 2025, 6 of 6 Vanguard money market funds, 75 of 102 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 171 of 193 Vanguard stock funds—for a total of 273 of 324 Vanguard funds—outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison. (Source: LSEG Lipper) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. View fund performance

3Due to changes to federal law that took effect on January 1, 2023, the age at which you must begin taking RMDs differs depending on when you were born. If you reached age 72 on or before December 31, 2022, you were already required to take your RMD and must continue satisfying that requirement. However, if you had not yet reached age 72 by December 31, 2022, you must take your first RMD from your traditional IRA by April 1 of the year after you reached age 73.

4Withdrawals from a Roth IRA are generally tax-free if you are over age 59½ and have held the account for at least five years; withdrawals of earnings taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. (A separate five-year period applies for each conversion and begins on the first day of the year in which the conversion contribution is made.)


For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account.

Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.

The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI's Form CRS and each program's advisory brochure here for an overview.

VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.