# Traditional IRA

*Retirement & Benefits — Finicade finance glossary*

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.

**Also known as:** IRA, individual retirement account, deductible IRA

**Related terms:** [Roth IRA](https://finicade.com/glossary/roth-ira), [401(k)](https://finicade.com/glossary/401k), [Tax Deferral](https://finicade.com/glossary/tax-deferral), [Required Minimum Distribution (RMD)](https://finicade.com/glossary/required-minimum-distribution), [Roth Conversion](https://finicade.com/glossary/roth-conversion)

Source: https://finicade.com/glossary/traditional-ira