Traditional IRAs are a great retirement planning tool for many U.S. taxpayers.

Traditional IRAs allow taxpayers to contribute funds to a retirement account, where the investment earnings will grow tax-deferred until the individual turns 65 and starts to draw retirement distributions from the account.

A traditional IRA can be created by any U.S. person, regardless of income limits, or whether the person is already covered by a retirement plan at work. What individuals need to be mindful of is the deductibility of their contributions.

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DISCLAIMER: I am a licensed attorney and certified public accountant (CPA) in the State of Florida. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of an attorney-client relationship, and no communication is intended to constitute legal advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal, or accounting strategies demonstrated in this video. Thank you….(read more)

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With the start of 2021, it’s time to start thinking about your retirement savings plan. One of the most popular retirement savings plans is the Traditional IRA. It offers tax-deferred growth and potential tax-deductible contributions, making it an attractive option for many investors. But how much can you contribute to a Traditional IRA each year?

The maximum contribution limit for 2021 and 2022 is $6,000 for those under 50 and $7,000 for those 50 and over. This limit applies to both Traditional IRA and Roth IRA contributions. Contributions to a Traditional IRA are tax-deductible up to certain limits, depending on your income and whether or not you or your spouse are covered by a retirement plan at work.

In addition to the contribution limit, there are other rules and restrictions that apply to Traditional IRA contributions. For example, you must be under age 70 ½ to make contributions and contributions must be made by the tax filing deadline (April 15th).

The maximum contribution limit for Traditional IRAs is set by the IRS and can change from year to year. It’s important to stay up to date on the current contribution limits so you can maximize your retirement savings.

In addition to the maximum contribution limit, there are other factors to consider when deciding how much to contribute to a Traditional IRA. For example, you should consider your current financial situation and retirement goals when deciding how much to contribute. You should also consider the potential tax benefits of contributing to a Traditional IRA.

Overall, the maximum contribution limit for a Traditional IRA for 2021 and 2022 is $6,000 for those under 50 and $7,000 for those 50 and over. It’s important to consider your current financial situation and retirement goals when deciding how much to contribute to a Traditional IRA.