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Traditional IRA

A retirement account funded with pre-tax money that's taxed on withdrawal.

A traditional IRA lets you contribute pre-tax dollars (subject to income and workplace-plan rules), lowering your taxable income today. The money grows tax-deferred, and withdrawals in retirement are taxed as ordinary income.

Traditional accounts favor savers who expect a lower tax rate in retirement than now. They're subject to required minimum distributions starting at age 73.

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