Why would you want a traditional ira?

A traditional IRA can be a great way to increase your savings by avoiding taxes while you build up your savings. You now get tax relief when you make deductible contributions. In the future, when you take money out of the IRA, you'll pay taxes at your regular income rate. When you have a traditional IRA and an employer-sponsored retirement plan, the IRS can limit the amount of your traditional IRA contributions you can deduct from your taxes.

To help you, here's a guide to the main benefits of investing in an IRA and, in particular, traditional IRAs. The most important question to ask yourself when trying to decide if a traditional IRA or a Roth IRA is best for you (at least from a tax standpoint) is when you want to get the tax benefit, now or after you retire. The potential downside is that while traditional IRA contributions may be tax-deductible, withdrawals from a traditional IRA are considered taxable income regardless of the marginal tax rate or tax bracket in effect at that time. Depending on your situation, the benefits of a traditional IRA may be worth more to you than the benefits of a Roth IRA.

However, if you are in a moderate-to-high tax bracket right now and qualify for the traditional IRA tax deduction, immediate tax savings from traditional IRA contributions may be the best way to do so.