Traditional IRA Definition
Traditional IRA refers to an individual retirement account (IRA) in the United States. An IRA is a method to save money for retirement that provides tax advantages. Contributions to a traditional IRA may be fully or partially deductible from tax, depending on eligibility requirements based on income, filing status, and availability of other retirement plans. Transactions inside the account (including capital gains, dividends, and interest) are not taxed until withdrawal. The IRA is held at a bank or brokerage, the amount on the account can be invested in assets that the financial institution allows (certificates of deposit, stocks or mutual funds).