A traditional IRA is a retirement savings vehicle that allows you to save money at a tax-deferred rate. Contributions made into a traditional IRA are pretax and may be tax-deductible. Earned interest, capital gains, or dividend income generated from the IRA funds also grow tax-deferred and are only taxed upon withdrawal.

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Contribution Limits

For 2024, the annual contribution limit is $7,000 for savers under the age of 50. If you’re over 50, you can contribute an extra $1,000, for a total of $8,000 annually. Remember, the annual limit is spread across all accounts if you own multiple IRAs.

Starting at the age of 59½, you can begin withdrawing from your traditional IRA without penalty. Withdrawals before this age may incur penalties and taxes. However, Accuplan offers guidance to help you navigate these rules and avoid unnecessary fees.

Early Distribution Penalty Tax Exceptions

There are several exceptions to the early distribution penalty tax, including:

• Death
• Disability
• Qualified higher-education expenses
• Unreimbursed medical expenses exceeding 7.5% of your adjusted gross income
• Medical insurance premiums
• Costs associated with buying or building a first home

Once you reach age 59½, you can withdraw funds from your traditional IRA without restrictions or penalties. Remember that deductible earnings and contributions — including interest, dividends and capital gains — will be taxed as ordinary income.

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Tax Benefits

Traditional IRAs offer two significant tax benefits. First, your funds grow tax-deferred and are only taxed upon withdrawal. Second, contributions can lower your taxable income in the contribution year, potentially qualifying you for additional tax incentives. This reduction in your AGI (adjusted gross income) could open the door to more tax-saving opportunities.

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Required Minimum Distributions (RMDs)

Once you reach age 72, the IRS requires you to start taking RMDs from your traditional IRA. Accuplan makes it easy to manage these distributions, ensuring you remain compliant and avoid penalties.

The deadline for taking RMDs is December 31 each year. However, you can postpone your first distribution until April 1 of the year after turning 72. Be aware that if you delay, you’ll need to take two RMDs in the same year. Failure to withdraw the required amount will result in a 50% penalty on the undistributed amount.

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Why Choose Accuplan for Your Traditional IRA?

Accuplan Benefits Services has been a trusted name in self-directed IRA administration for decades. Since 1985, we have evolved from an estate planning business into one of the leading providers of self-directed traditional IRAs. Our profound experience, particularly through our sister company and IRA custodian, American Estate and Trust, has equipped us to support thousands of investors in achieving their financial goals.

Here’s what sets us apart:

• Experienced and dedicated experts: Our team brings years of industry experience and a genuine passion for self-directed IRAs. We prioritize professionalism and ensure your investments comply with IRS rules.
• Intuitive and efficient platform: Our platform is designed for seamless self-direction. Whether you’re an individual investor or a business, Accuplan’s platform allows you to easily and confidently manage and diversify your retirement investments.
• Secure and trusted services: With over $2 billion in assets under management, Accuplan is committed to providing a secure, reliable service. Our approach combines innovation and experience to offer a self-directed IRA solution you can trust.

Enhance Your Traditional IRA Experience With Accuplan

Accuplan allows you to do more with a traditional IRA. While most retirement accounts rely heavily on stocks and bonds, the IRS permits a much broader range of asset types with a self-directed IRA. With Accuplan, you can set up a self-directed traditional IRA and invest in tangible assets like real estate or gold, or in paper assets like private equity or loans. This flexibility gives you the control to diversify your portfolio beyond conventional investments.

With Accuplan, the possibilities are endless, and you can tailor your retirement strategy to meet your unique financial goals. Our intuitive platform, secure services and experienced team make managing your self-directed IRA both easy and efficient.

Ready to take control of your financial future? Open an account with Accuplan today and start investing in the assets that matter most to you. 

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Frequently Asked Questions