Earnings accumulate on a tax-deferred basis and are not taxed until they are distributed.

Deductible Contributions

Investors who contribute to a Traditional IRA may be able to deduct all or part of the contribution for federal income tax purposes. If you or your spouse is not an active participant in an employer-sponsored retirement plan, you may deduct the entire contribution regardless of your income. If you are an active participant in such a plan, deductions are subject to certain income limits. The following chart will help you determine if your contributions are deductible for federal income tax purposes.