Traditional IRAs

The traditional deductible may be the best choice for you depending on your age and your needs.

If you are not a participant in an employer-sponsored retirement plan, you may be eligible.
A single taxpayer or married filing jointly may be allowed to make fully deductible contributions.
A single taxpayer or married filing jointly may be allowed to make reduced deductible contributions.
A non-working spouse may be eligible for fully deductible contributions if the spouse participates in a qualified retirement plan.
A working spouse may be eligible to contribute to their own IRA.
If you are under age 70¹/2 and have earned income, you are eligible.

These are the guidelines for a deductible IRA:

A maximum of up to $4,000 each tax year for single and $8,000 for married filing jointly is allowed.
Money may be withdrawn before age 59¹/2 to purchase a first home (up to $10,000 maximum) or pay qualified costs of a higher education.
Earnings are tax-deferred.
Any earnings and deductible contributions are taxed as ordinary income in the year the money is withdrawn.