A Traditional IRA is an optional product offered within the Honest Dollar software . A Traditional IRA is available to any individual because it does not have the typical qualification requirements such as salary range or IRS filing status.
The big advantage of a Traditional IRA is that employee contributions are potentially tax deductible and are allowed to grow tax-deferred. Once reaching retirement age (59 1/2 years old) distributions can be withdrawn without penalty but the distribution will be treated as income and be taxed, except for any non-deductible contributions or after-tax contributions rolled over from an employer’s eligible retirement plan made to any of an individual’s Traditional IRAs.
During the user sign-up process you may be offered a Traditional IRA if you didn’t qualify for a Roth IRA. But it is always the user’s choice to decide which account fits their needs the best.
An individual can have multiple Traditional and Roth IRAs with different financial institutions, but the aggregate annual contributions that the individual makes to all of his or her IRA accounts must not exceed the annual contribution limit set by the IRS.
You can find more about Traditional IRA rules and regulations here: