The greatest short-term benefit of a traditional IRA is the tax benefit. This benefit comes for you in two ways:
- You may qualify for an income tax deduction when you contribute to a traditional IRA
- You don’t have to pay taxes on your traditional IRA until you withdraw the money
But the most important benefits go deeper. Most Americans do not have nearly the savings they need, especially when company’s pension plans and government programs are more uncertain than ever. While retirement may seem far off – or even not something you are looking for in the traditional sense of the term – it is important to have the freedom and flexibility to make choices for your future. These tax protected savings accounts are one of the best ways to achieve that.