Traditional IRA Tax-deferred retirement growth

Invest and potentially grow your retirement money—without being taxed—until you withdraw it in retirement. All while possibly lowering your current income taxes.


What is a traditional IRA?

A traditional IRA is an individual retirement account (IRA) designed to help people save for retirement, with taxes deferred on any potential investment growth. Contributions are generally made with after-tax money, but may be tax-deductible if you meet income eligibility.1



Benefits of a traditional IRA


Tax savings

Lower income taxes: If you're within the IRS income limits, deduct all or part of your contributions from your federal taxes.1


Access to your money

Big life events: Withdraw penalty-free for certain expenses, such as a first home purchase, birth, or college expenses.2


Easy to qualify

No income limits: As long as you're working, you can keep contributing to a traditional IRA, as well as your 401(k).1

Pick the Fidelity traditional IRA that fits you best

As hands-on or hands-off as you're looking for, we've got you covered when it comes to choosing a Traditional IRA.

Select your own investments

Manage your own portfolio using our free planning tools.3


  • No account-opening fees or minimums4—invest with as little as $1
  • Choose from a broad range of investment options, including those designed for retirement such as target date funds

Investments personalized for you

Fidelity Go® is one of several managed account services that can help you with both financial planning and investing.


  • No minimum to open an account—invest with as little as $105
  • $0 advisory fee for balances under $25K (0.35% for balances of $25K+)5
  • Designed for investing goals of 3+ years

Invest directly in crypto with Fidelity Crypto® for IRAs

Invest in crypto like bitcoin and ethereum and get the potential for tax-free growth in a Fidelity Crypto® Traditional IRA.
Learn more

Fidelity Crypto® for IRAs is offered by Fidelity Digital Assets®


Other ways to invest with our help

Explore the many ways you can invest with Fidelity

Not sure the right IRA for you: Roth or traditional? Here's 2 tools to help:

Quickly compare: We break down the features for you, so you can pick the right fit.


Compare traditional vs. Roth IRAs, side by side



Calculate your eligibility: We take out the guesswork by showing the accounts and amounts that are possible for you.


Answer a few questions—we'll tell you what you're eligible for

The key to unlocking your Traditional IRA's full potential? Investing your money.


Contributing to your account is a great first step. But investing gives your money the potential to grow tax-free. We'll help you get started.


View investment options

FAQs

  • If I qualify to contribute to both a Traditional IRA and a Roth IRA, are there tax implications I should consider?

    Having a mix of both pretax and Roth contributions can help create additional flexibility in retirement to respond to a great unknown—future tax rates. For people who expect income in retirement to be as high or higher than their current level, others who expect their tax rate in retirement to be higher than today, or younger people who expect steady income growth over their careers, Roth IRA contributions may be the better choice. But if you believe that your tax rates will be lower in retirement than they are now, you may want to prioritize pretax vehicles like the Traditional IRA. Our IRA Contribution Calculator allows you to answer a few questions and find out which one might be right for you.

  • Are there age limits to contribute to an IRA?

    The SECURE Act of 2019 removed the age limit at which an individual can contribute to a traditional IRA. Prior to 1/1/2020, an individual could not contribute after age 70½.

    The Act now allows anyone that is working and/or has earned income to contribute to a Traditional IRA regardless of age.

  • How much can I contribute to my IRA?

    You can contribute up to the lesser of 100% of your earned income or $7,000 for 2025. Once you reach age 50, contribution limits on IRAs increase by another $1,000. This allows for a "catch-up" contribution for those nearing retirement.

  • How can the IRA Contribution Calculator help me?

    Answer a few questions in the IRA Contribution Calculator to find out whether a Roth or traditional IRA might be right for you, based on how much you're eligible to contribute and how much you might be able to deduct on your taxes.

  • How much money do I need to open a Fidelity IRA?

    There is no minimum dollar amount required to open a Fidelity IRA. Some mutual funds may have minimums required to purchase; review each fund’s prospectus for details.

  • Can I withdraw money from my IRA?

    Under certain conditions, you can withdraw money from your IRA without penalty. The rules vary depending on the type of IRA you have. Generally, for a Traditional IRA, distributions prior to age 59½ are subject to a 10% penalty in addition to federal and state taxes unless an exception applies. Starting at age 59½, you can begin taking money out of your IRA without penalty, but you will still be responsible for taxes that might be due. Per the SECURE Act of 2019, as of 1/1/2020, upon birth or adoption of a child, an IRA owner may withdraw up to $5,000 penalty-free from any type of defined contribution plan or a Traditional IRA. Such distributions may also be repaid.2

    Starting at age 73, required minimum distributions (RMDs) begin—you can calculate how much you will be required to take using this RMD Calculator. You can also log in to review RMD amounts for your Fidelity IRAs (Traditional IRAs, SEP IRAs, SIMPLE IRAs, Rollover IRAs, and all small-business retirement plans). Our system also keeps track of all withdrawals and allows you to set up automated distributions. Learn more about planning your retirement distributions.2

    For a Roth IRA, you can take a penalty-free, federal tax-free distribution of contributions at any time. Provided you have met the five-year aging requirement, and one of the following conditions, you may also take a tax-free and penalty-free distribution of earnings:

    • Over age 59½
    • Death or disability
    • First-time home purchase

    Note: There are no RMDs for Roth IRAs during the lifetime of the original owner. Please review Withdrawing From Your IRA for more information.

  • Can I transfer my IRA from another institution?

    Yes, visit IRA Transfers for a quick overview of the online process.

  • Can I roll over my old 401(k) from a previous employer to my Roth or Traditional IRA?

    Generally, yes. Contact our rollover specialists, and they'll guide you through the entire process—from beginning to end. Call 800-343-3548 to get started.

    If you're self-employed, you may also be able to roll over your 401(k) into your own small business retirement plan, such as a SEP IRA or self-employed 401(k). Learn more about self-employed rollover options

  • What tax form will I receive for my Traditional IRA contributions?

    If you contributed to a Traditional IRA, you will receive Form 5498 from Fidelity in May. This form does not need to be filed with your taxes. Form 5498 summarizes your IRA contributions and fair market value. For help with this tax form, see the IRS Instructions for Form 5498 (PDF).

Additional resources

7 things you may not know about IRAs

Make sure you aren't overlooking some strategies and potential tax benefits.

Traditional or Roth IRA, or both?


Traditional IRAs and Roth IRAs offer different benefits- but having both can make sense.

Tax rates can help you choose between IRAs


Traditional or Roth account? 2 tips to help you choose.