Traditional IRA benefits for long-term wealth
With a Traditional IRA, your contributions are typically tax-deductible, which means you can reduce your taxable income for the year you contribute. Your investments then grow tax-deferred, so you won't pay taxes on earnings until you withdraw them in retirement.
Tax-deferred
growth
Contributions to your Traditional IRA grow tax-deferred, meaning you won’t pay taxes on your earnings until you withdraw them in retirement.
No employer
plan required
You can contribute to a Traditional IRA regardless of employer benefits, making it ideal for self-employed individuals, freelancers, and those without retirement plans.
Lower taxable
income today
Contributions to a Traditional IRA can reduce your taxable income for the year, potentially lowering your current tax bill while your investments grow for the future.
Contribute regardless
of income
There are no income restrictions for making contributions to your Traditional IRA. This means you can contribute to your IRA no matter how much you earn.
Over 40% of U.S. households own an IRA, collectively holding an impressive $11 trillion in assets. With an average balance of $120,000, IRAs demonstrate strong long-term growth potential. Traditional IRA contributors can reduce their taxable income by up to $7,000 annually, offering significant tax advantages.
See the difference: Traditional IRA vs. Roth IRA
Understand the key differences between Roth and Traditional IRAs — and make the smarter choice for long-term retirement security.
| Objectives | Traditional IRA | Roth IRA |
|---|---|---|
| Tax treatment | Earnings grow tax-deferred | Earnings grow tax-free |
| Contribution limits | $7,000 ($8,000 if 50+) | $7,000 ($8,000 if 50+) |
| Income limits | No limits for contributions, but deduction phases out at higher incomes | Contribution eligibility reduced above $150K (single) / $236K (joint) for 2025 |
| Required Minimum Distributions (RMDs) | Yes, starting at age 73 | No RMDs |
| Withdrawal rules | Penalty for early withdrawal before 59½ (some exceptions apply) | Contributions are tax and penalty-free when withdrawal |
Click here to learn more about Roth IRA
Why WealthRabbit’s IRA works for you
- Hassle-free account setupWith WealthRabbit, you can open your IRA in minutes—completely online and stress-free.
- Curated Investment PortfoliosChoose from a selection of professionally managed portfolios, including crypto investments, tailored to your retirement goals.
- Seamless rolloversRoll over your existing IRA into WealthRabbit and manage your retirement savings in one place.
- Quick & actionable insightsTrack your IRA growth with real-time updates on contributions, investments, and overall progress.
- Flexible contribution optionsMake contributions on your terms—monthly, quarterly, or annually. You have the flexibility to adjust your contributions based on your financial goals.
Opening a Traditional IRA with WealthRabbit is easier than you think
STEP 1
Create your WealthRabbit account and provide a few personal details to open your IRA.
STEP 2
Choose your contribution amount and set up how and when you’d like to fund your account.
STEP 3
Start saving and track your progress—all from one easy-to-use dashboard.
Start planning today with free Traditional IRA account
FOR Individuals
Traditional IRA
Free*
No setup or monthly fees
A tax-deferred retirement account, perfect for individuals saving for their future.
- Easy setup in minutes
- No account setup fee
- Access to a wide range of investment options
- Easy setup in minutes
- No account setup fee
- Access to a wide range of investment options
*For individuals, a one-time $10 custodian fee and tiered monthly asset management fees apply.
Frequently asked questions
Traditional IRA contributions may be tax-deductible, helping reduce your taxable income. Your investments also grow tax-deferred until you withdraw them in retirement.
Yes, you can open multiple IRAs (Traditional and Roth). However, your total annual contribution limit applies across all accounts combined. For 2025, that limit is $7,000 (or $8,000 if you’re 50 or older).
The 5-year rule mainly applies if you convert funds to a Roth IRA or inherit a Traditional IRA. In these cases, withdrawals may be subject to a 5-year waiting period to avoid penalties.
For 2025, you can contribute up to $7,000 if under age 50, or $8,000 if age 50 or older, thanks to the catch-up contribution allowance.