Auto-Owners uses deferred annuities to fund either of these tax advantage plans. A Traditional IRA is a personal retirement savings plan. Contributions may be tax deductible and interest earnings are tax deferred .
Withdrawals can be made at anytime, however, they are taxable in the year received.
Income tax liability on tax deductible contributions and all earnings is deferred until retirement when taxable income is most likely reduced. Contributions for a given year do not have to be made until April 15 of the following year. Most taxpayers can deduct Traditional IRA contributions. IRA retirement benefits mean added security when needed most. The Roth IRA is a personal retirement savings plan.