A traditional IRA, or traditional Individual Retirement Account, is a type of savings account that provides tax benefits to help individuals save for retirement. Anyone who has earned income can contribute to a traditional IRA, but your contributions may or may not be deductible depending on your income level.

The main advantage of a traditional IRA is that the growth of your money is tax-deferred. This means that you will not pay any taxes on the funds held in the IRA, including capital gains, until you take money out to use it in retirement. When you take money out, you will pay income tax, just like you do on your paychecks now. It is also important to keep in mind that there is typically a penalty if you use the funds before age 59 ½.

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