Traditional IRA
Also called: IRA, individual retirement account, deductible IRA
A traditional IRA is an individual retirement account where contributions may be tax-deductible and growth is tax-deferred until withdrawal. Anyone with earned income can open one, independent of an employer, which makes it the natural home for a 401(k) rollover. Deductibility phases out at higher incomes if you're covered by a workplace plan, and withdrawals in retirement are taxed as ordinary income.