An IRA, also known as an individual retirement plan, is a scheme that provides many advantages for your retirement savings in the US. There are many different types of IRA, ‘traditional’ being the most common. There are many companies that specialise in IRA schemes, like Quest IRA for example, who offer a wide range of IRA options that you can tailor to best suit you.

One such option is a Gold IRA, which allows you to invest in physical gold and other precious metals as a way to diversify your retirement savings. Gold IRAs are popular among investors who are looking for alternative investments that are less subject to market fluctuations. The most noteworthy part about this type of investment is that precious metals can be stored at home (learn more on home storage here). This is as long as you have a secure storage facility that meets IRS requirements. Additionally, your custodian must also provide an annual audit to ensure that your gold is safe and in compliance with IRS regulations.

That said, here we will look at a traditional IRA and who is eligible along with the benefits.

Eligibility for traditional IRA

The traditional IRA’s optimum advantage is it allows you to make annual tax-deductible contributions to your retirement pot. It does not allow for earnings to grow tax-free. There are two guidelines that you must fit to to be eligible to fully contribute to a traditional IRA. As a united states taxpayer, you cannot be actively participating in an employer sponsored plan if you want to make contributions to a traditional IRA plan. The very maximum contribution is $5,000 per person per year. Married couples are allowed to contribute $10,000. If you are aged 50 or above you are permitted to contribute $6,000 due to a catch up provision. Anything you contribute is tax deductible up to 100%. However, if you already have an IRA and want to branch out and see what else you can do with your money, you may want to check out converting your ira into gold to see if this may be a better fit.

Benefits of a traditional IRA

Traditional IRAs including platinum IRAs are a brilliant way of getting a tax deduction and saving money at the same time. If you are investing $5,000 per year into a traditional IRA scheme you can also claim $5,000 per year tax deduction. This will lower your adjusted gross income, which in turn lowers your tax liability. Your savings will sit tax free with contributions until you withdraw anything or you hit the age of 70 .

Tax Deductions

All of your contributions are fully tax deductible providing your employer doesn’t offer a qualified retirement plan. If you are currently covered by an employer’s plan, you could possibly still be allowed to receive a tax deduction, depending on on your filing status and if you come under certain income thresholds. If you are a single filer and you are participating in your company’s retirement plan and you also earn less than $56,000 per year you quality for a full deduction. If you are a married filer and you are a participant in your company’s plan and you earn a combined total of $89,000 with your partner you are also eligible for a full income tax deduction.

Protection from bankruptcy

Contributions to a traditional IRA are protected from creditors. You can also pass your assets onto beneficiaries after you pass away.

Numerous retirement accounts

You can set up a traditional IRA even if you have another retirement plan. Though if you have enough qualified retirement plans your contributions may not be completely tax deductible.

Anyone can participate

Everyone and anyone is permitted to enroll in a traditional IRA scheme. Though, depending on your circumstances, you may not be eligible to receive a tax deduction as well. It’s important to bare this in mind when choosing your IRA scheme.