How Can a Traditional IRA Be Opened?
You can open different kinds of IRAs with a variety of organizations. You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. You can also open an IRA through your stockbroker. Any IRA must meet Internal Revenue Code requirements. The requirements for the various arrangements are discussed below.
Kinds of traditional IRAs.
Your traditional IRA can be an individual retirement account or annuity. It can be part of either a SEP or an employer or employee association trust account.
For 2020 your total contributions to all of your traditional and Roth IRAs cannot be more than:
Who can contribute?
You can contribute if you (or your spouse if filing jointly) have taxable compensation. Prior to January 1, 2020, you were unable to contribute if you were age 70½ or older.
Are my contributions deductible?
You can deduct your contributions if you qualify.
How much can I contribute?
The most you can contribute to all of your traditional and Roth IRAs is the smaller of:
What is the deadline to make contributions?
Your tax return filing deadline (not including extensions). For example, you can make 2019 IRA contributions until April 15, 2020.
When can I withdraw money?
You can withdraw money anytime.
Do I have to take required minimum distributions?
You must start taking distributions by April 1 following the year in which you turn age 72 (70 1/2 if you reach the age of 70 ½ before January 1, 2020) and by December 31 of later years.
Are my withdrawals and distributions taxable?
Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
"IRS Website" Irs.gov, 10-Jan-2020