A Traditional IRA is a retirement account in which contributions are tax free. The interest earned on money in a Traditional IRA is taxed once funds are withdrawn during retirement.
In 2018, your total contributions to your traditional and Roth IRAs cannot be more than:
- $5,500 ($6,500 if you’re age 50 or older), or
- your taxable compensation for the year, if your compensation was less than this dollar limit.
More information from the IRS regarding Traditional IRAs can be found here.