The traditional IRA is a well-known means for providing people with tax-deferred retirement savings. A Traditional IRA can be established to accept contributions of up to $5,000 in 2011 and 2012. IRA owners who are at least 50 years old in 2011 or 2012 can contribute an additional $1,000 per year. Contributions may or may not be tax deductible in the year they are made, depending on how much you earn and whether you also participate in an employer-sponsored retirement plan. The contribution limit for a Traditional IRA also must be reduced by Roth IRA contributions.
Trust accounts and services are not covered by FDIC