Traditional IRA
Retirement Account

What is a Traditional IRA?

A Traditional IRA (Individual Retirement Account) is a tax-advantaged retirement savings account designed to help individuals save for retirement. You can contribute pre-tax or after-tax dollars, and unlike a Roth IRA, your contributions may be tax deductible. However, this depends on different variables, such as your income level and whether you or your spouse are covered by a retirement plan through employment.

How Does a Traditional IRA Work?

With a Traditional IRA, your contributions may be tax-deductible in the year they are made, potentially lowering your taxable income for that year. Your investments within the IRA grow tax-deferred, meaning you will only pay taxes on your earnings once you begin withdrawing funds in retirement. This tax deferment can allow your investments to compound over time, potentially leading to more significant savings for your retirement.

Benefits of a Traditional IRA

There are numerous benefits to investing in a traditional IRA as you plan for your future: 

No Income Limits for Opening

Although there are annual contribution limits, there are no income limitations for opening a traditional IRA.

Tax-Deferred Growth Earnings

Your investments grow tax-free until withdrawal, allowing maximum growth potential over time. This deferral period means a traditional IRA may be a good option for those who expect to be in the same or lower tax bracket in the future. 

Immediate Tax Savings

A primary benefit of contributing to a traditional IRA is that depending on your income level. Whether you have an employer-sponsored retirement plan, you may be able to reduce your taxable income for the year, thereby lowering your current tax bill.

How to Open a Traditional IRA with Monorail

Opening a Traditional IRA with Monorail is a simple process:

1. Visit Monorail's Onboarding Page: Start by visiting Monorail's Onboarding Page to set up or log in to your account.
2. Choose Your Retirement Portfolio: Explore and select from Monorail's diverse range of retirement portfolios tailored to your risk tolerance and investment goals. We encourage you to visit Monorail's Retirement Portfolios for more information.
3. Complete Your Application: To complete your traditional IRA application, follow the easy steps provided on the onboarding page. You'll need to provide some personal information and decide your investment preferences.
4. Fund Your IRA: Once your application is approved, you can fund your traditional IRA account. You can make contributions up to the annual contribution limit the IRS sets.
5. Monitor and Manage Your Investments: Monorail's user-friendly platform lets you track your investments. You can adjust your portfolio as needed and stay informed about your retirement savings progress to make informed decisions about your investments and financial future.