IRAs

A traditional IRA lets you postpone taxes

Want your money to grow tax-deferred while you put away money for your retirement? Think traditional IRA.

Ready to get started? Open an IRA today

Ready to get started? Open an IRA today

What is a traditional IRA?

A traditional IRA is a type of individual retirement account that lets your earnings grow tax-deferred.* You pay taxes on your investment gains only when you make withdrawals in retirement.

Compare Roth vs. traditional IRAs

Other traditional IRA advantages

Tax-deductible contributions

If you're not covered by a retirement plan at work, you can deduct the entire amount of your IRA contribution on your income tax return. For the 2020 and 2021 tax years, this would be up to $6,000 annually, or $7,000 if you're 50 or older.

No income limit

There's no maximum income limit. You can invest in a traditional IRA no matter how much money you earn.

Some things to think about

Age limit on contributions
As a result of changes made by the SECURE Act, you can make contributions to a traditional IRA for 2020 or later regardless of your age.

Mandatory RMDs
You must begin taking required minimum distributions (RMDs) from your account by April 1 of the calendar year following the year you reach age 72 (age 70½ if you attained age 70½ before 2020).

Get answers to common RMD questions

Taxable withdrawals
Withdrawals may be subject to federal income tax.

Get details on IRA withdrawals

The sooner, the better

The younger you are when you open your IRA, the greater your saving potential because you get that tax-free compounding clock ticking longer for you.

Learn more about the power of compounding

The sooner, the better

The younger you are when you open your IRA, the greater your saving potential because you get that tax-free compounding clock ticking longer for you.

Learn more about the power of compounding

Still need help? Consider our advisor services

Vanguard Personal Advisor Services®

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Ready to open an IRA?

New to Vanguard?


Already a Vanguard client?  Log in and add open an IRA on your account.

Ready to open an IRA?

New to Vanguard?


Already a Vanguard client?  Log in and add open an IRA on your account.

*When taking withdrawals from an IRA before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.

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.

Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.