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  • A Traditional IRA is an individual retirement account for investors who are looking for tax-deferred growth potential.

    WHY A TRADITIONAL IRA COULD MAKE SENSE FOR YOU

    • All or part of your Traditional IRA contributions may be tax-deductible, which may reduce your taxable income.
    • Your deductible contributions are taxed only when you make withdrawals, at a time when many investors may be in a lower tax bracket.
    • There are no income restrictions when it comes to contributing to a Traditional IRA.
    Open Your a Traditional IRA
    No-Load Funds   T. Rowe Price offers no-load mutual funds with no sales charges or commissions. In addition, most of our funds have lower expense ratios than their Lipper averages.  
     
    Save on IRA Fees   A $20 annual fee is charged for each IRA mutual fund account with a balance of less than $10,000 at the time the fee is assessed. There are no annual fees for mutual fund accounts with balances of at least $10,000; individuals with balances of at least $50,000; or if you qualify for T. Rowe Price Select Client Services. Annual fees will also be waived if the account utilizes all e-delivery options including statements, confirms and prospectuses and shareholder reports.  
     
        ELIGIBILITY REQUIREMENTS
    Age   You must be under age 70½ to contribute.
         
    Maximum
    Income
      No restrictions.
         
    Minimum
    Income
      You must have earned income equal to or greater than your contributions.
         
    TAX ADVANTAGES
    • Tax-deferred growth potential.
    • You generally pay taxes when you make withdrawals, at which time you may be in a lower tax bracket.
    • Your Traditional IRA contributions may be tax-deductible if you or your spouse does not participate in an employer-sponsored plan.
    • Tax Deduction Details.
    Maximum   2013 and 2014 - $5,500 per year ($6,500 if you are age 50 or older) Use IRA AutoMax to automatically contribute the maximum amount every year. ROTH IRA CONTRIBUTIONS
         
    Minimum   $1,000 to open an Account. $100 per transaction for any additional contributions which can be set up with our Automatic Asset Builder Service.
         
      All withdrawals from a Traditional IRA (except for amounts attributable to nondeductible contributions) are generally taxed as ordinary income.  
     
      You must begin taking Required Minimum Distributions (RMD) by April 1 of the year following the year in which you reach age 70½.

    For more information on RMDs, click here.
     
     

    The 10% penalty tax for withdrawals made before age 59½ is waived in the following cases:

    1. Death
    2. Disability
    3. First-time home purchase up to $10,000
    4. Qualified medical expenses
    5. Qualified higher education expenses
    6. Health insurance premiums while unemployed (for at least 12 weeks)
    7. A series of Substantially Equal Periodic Payments
    8. Conversion of a Traditional IRA to a Roth IRA
    9. Qualified reservist distribution
    10. Creditor access/IRS levy in a civil suit

    You're eligible for a fully deductible Traditional IRA contribution if neither you nor your spouse is considered an active participant in an employer-sponsored retirement plan. If either of you do participate in such a plan, your ability to deduct your full IRA contribution may be limited by your income. Check the chart below to see if any part of your Traditional IRA contribution will be deductible at your income level.

    Tax Deductibility of Contributions for the 2014 Tax Year
    (You and/or your spouse are considered an active participant in an employer-sponsored retirement plan)
    Adjusted Gross Income, Investor Under Age 50
    Single Married/Filing Jointly Married/ Filing Separately Deductible
    IRA Owner Active Participant* IRA Owner Non-Active Participant*
    $60,000 $96,000 $181,000 $0 $5,500
    $61,000 $98,000 $182,000 $1,000 $4,950
    $62,000 $100,000 $183,000 $2,000 $4,400
    $63,000 $102,000 $184,000 $3,000 $3,850
    $64,000 $104,000 $185,000 $4,000 $3,300
    $65,000 $106,000 $186,000 $5,000 $2,750
    $66,000 $108,000 $187,000 $6,000 $2,200
    $67,000 $110,000 $188,000 $7,000 $1,650
    $68,000 $112,000 $189,000 $8,000 $1,100
    $69,000 $114,000 $190,000 $9,000 $550
    $70,000 $116,000 $191,000 $10,000 $0
    Adjusted Gross Income, Investor Age 50 or Over
    Single Married/ Filing Jointly Married/ Filing Separately Deductible
    IRA Owner Active Participant* IRA Owner Non-Active Participant*
    $60,000 $96,000 $181,000 $0 $6,500
    $61,000 $98,000 $182,000 $1,000 $5,850
    $62,000 $100,000 $183,000 $2,000 $5,200
    $63,000 $102,000 $184,000 $3,000 $4,550
    $64,000 $104,000 $185,000 $4,000 $3,900
    $65,000 $106,000 $186,000 $5,000 $3,250
    $66,000 $108,000 $187,000 $6,000 $2,600
    $67,000 $110,000 $188,000 $7,000 $1,950
    $68,000 $112,000 $189,000 $8,000 $1,300
    $69,000 $114,000 $190,000 $9,000 $650
    $70,000 $116,000 $191,000 $10,000 $0
    *Your employer's determination of your active participant status for a year is shown on your IRS Form W-2 for that year. Your employer's benefits department can also tell you if they believe you are an active participant for a year.

    Open a Traditional IRA

    Learn More about a Roth IRA