Traditional IRAs offer tax benefits for retirement savings

A traditional IRA, or individual retirement account, is a useful option for saving money for retirement. Here are some reasons why you might consider opening one. Firstly, a traditional IRA offers tax benefits. Contributions to the account may be fully deductible, depending on your income. This means you could lower your taxable income now and pay taxes when you withdraw the money in retirement, likely at a lower rate. Secondly, you can contribute more as you get older. In 2025, people under 50 can put in $7,000 per year. Those over 50 can contribute $8,000. This additional amount can grow significantly over time, adding more money for your retirement needs. Additionally, if you have a spouse who does not earn an income, they can also open an IRA. This allows you to double your savings potential while benefiting from tax deductions. Another advantage is the extended time to contribute. You have until Tax Day, which is usually April 15, the year after, to make contributions. This gives you extra time if you need to catch up on your savings. Finally, you can use a traditional IRA alongside other retirement plans, like a 401(k). This allows you to diversify your investments. Setting up an IRA is straightforward. You just need to contact a bank or brokerage, fill out some paperwork, and fund the account. It's a simple way to secure your financial future.