In today’s world, retirement planning has become increasingly important. With the costs of living continuing to rise, coupled with uncertainly about the future, saving for retirement is becoming more and more vital to achieve financial security. One of the ways you can save for retirement is by using a Traditional IRA.

A Traditional IRA is a personal savings plan that allows individuals to contribute pre-tax money into a tax-deferred account. This means you are subject to either no taxes or deferred taxes on the money saved in the account until you make a withdrawal. This allows the money saved to accrue more interest over time, something that is especially beneficial for taxpayers who expect to be in a higher marginal tax bracket when they start withdrawing funds from their IRA.

The contributions into a Traditional IRA are also limited by a certain amount mandated by the Internal Revenue Service. For 2020, individuals under the age of 50 can contribute up to $6,000 annually to their Traditional IRA account. Those 50 and older are allowed to contribute up to $7,000 per year.

While these limits may seem prohibitive, they actually offer several positive benefits. First, they encourage individuals to save more now, thus boosting their retirement savings earlier