Traditional ira
Invest in your future with a TIAA IRA
No matter your financial goals, we have an IRA account that can help you pursue them.
What is an IRA?
An individual retirement account (IRA) is a way to save money for retirement while potentially providing tax benefits. With a traditional IRA, you put in money before it's been taxed (pretax money). You may be able to deduct the amount you've contributed from your yearly income, which may decrease your tax bill now. Instead of paying taxes on that money today, you'll pay taxes when you withdraw.1
A traditional IRA may be for you if you think you’ll be in a lower tax bracket later in life or want to reduce your taxes today.
Traditional ira benefits
Grow your savings, defer taxes
Tax-deductible contributions
Traditional IRAs may let you deduct contributions from your income to reduce your tax bill.
A wide array of investments
Build your portfolio to pursue your retirement needs, with options that include guaranteed growth and lifetime income.
Advice and support
We offer complimentary advice and support to help you figure out which investment strategy may be right for you.2
How we’re different
Get guaranteed growth and retirement checks for life.3
When you open an IRA with us, you have the opportunity to save in TIAA Traditional,* our flagship fixed annuity. You’ll get guaranteed growth no matter what’s happening in the market. And when you’re ready, you can activate lifetime income and receive retirement checks for as long as you live.
*Issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
How an ira works
How to open and invest with a TIAA IRA
We make it easy to open an IRA and we can be your partner as you open your account and choose your investments.
Apply online or over the phone
Start your IRA application online or call us at 844-TIAA-IRA (844-842-2472).
Fund your IRA
Make a contribution or roll over money from your previous retirement account (by direct transfer or check).3
Choose your investments
Decide how you want to invest. Choose a streamlined option, like a prebuilt portfolio, to make investing simple. Or manage your investments yourself, choosing among our annuities, mutual funds, socially responsible investments and more.
Track your progress
After you invest you can see how your money may have grown and manage your investments by logging in to your account.
Next steps
Ready to start? Open your Traditional IRA account online in less than five minutes.
Open a Roth IRA
Open your IRA online or give us a call at 844-TIAA-IRA (844-842-2472). We’re here Monday through Friday, 8 a.m. to 7 p.m. (ET).
Roll over4
We make it simple, with zero costs or fees.
Contribute
Make a contribution to your existing IRA by logging in to your account.
Find out which IRA is right for you
Our IRA selector tool can help you choose an IRA that can work for your unique financial needs and retirement goals.
Compare options
Traditional IRA versus Roth IRA
The main difference between a traditional IRA and a Roth IRA is the way they are taxed. With a traditional IRA you put in pretax money and may be able to deduct your contribution amount from your taxable income. Instead of paying taxes today, you’ll pay taxes on your withdrawals in retirement.
Traditional IRA
Your potential earnings will grow tax-deferred.
Tax benefits
- Contributions: May be tax deductible
- Investment growth: Tax-deferred
- Withdrawals: Taxed at your current income level
Additional guidelines
- Eligibility: Anyone with earned income may contribute (up to IRS income limits)
- Age limits: None; contribute at any age
- Withdrawals: Required by age 735
May be for you if you think you’ll be in a lower tax bracket later in life.
Roth IRA
Earnings grow tax-free and you won’t pay taxes on qualified withdrawals in retirement.
Tax benefits
- Contributions: Come from after-tax money
- Investment growth: Tax-free
- Withdrawals: Withdraw contributions at any time without penalty. Tax-free qualified withdrawals on earnings allowed after age 59½
Additional guidelines
- Eligibility: Anyone who earns income can open a Roth IRA; to contribute, you need to fall within IRS income limits
- Age limits: None; contribute at any age
- Withdrawals: Never required
May be for you if you think you’ll be in a higher tax bracket later in life, like when you retire.
What people ask us
What are the benefits of a traditional IRA?
A traditional IRA has the following benefits
- Tax-deductible contributions. You can potentially lower your taxes by deducting your contribution amount from your taxable income.1
- Tax-deferred earnings. You won't pay taxes on earnings until you withdraw.
- Anyone can open. And anyone who earns an income can contribute to an IRA. Some financial institutions require a minimum balance or minimum contribution to open an IRA. (TIAA doesn't have any minimums on traditional IRAs.)
- Inheritable. You can name a beneficiary who will inherit your IRA.
What are traditional IRA tax deductions based on?
With a traditional IRA you may be able to deduct the amount you contributed in a given tax year from your taxable income. As a simplified example, if you make $75,000 a year and you’ve contributed $5,000 to your IRA, you would pay taxes on $70,000 instead of the full $75,000.1
Ira resources
Keep learning with our IRA resources
Calculate your IRA contribution limits
Learn how much you can invest in your IRA.
Which IRA is right for you?
Our digital tool can help you decide.
What are the benefits of annuities in your IRA?
A fixed annuity provides guaranteed growth and lifetime income.
We’re here to help
Give us a call at 844-TIAA IRA (844-842-2472), weekdays, 8 a.m. to 7 p.m. ET, or schedule an appointment.
This material is for informational or educational purposes only and is not fiduciary investment advice, or securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
1 Deductibility of IRA contributions is subject to income limitations and withdrawals prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply.
2 Financial consultants provide advice and education using an advice methodology from an independent third-party.
3 Any guarantees under annuities issues by TIAA are subject to TIAA's claims-paying ability. Additionally, retirement check refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
4 Before rolling over or consolidating assets, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer's plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more at TIAA.org/reviewyouroptions.
5Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to 73. In 2033, the RMD age will increase to age 75 for those born on or after 1960.
TIAA Traditional is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued. Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.
Any guarantees under annuities issues by TIAA are subject to TIAA's claims-paying ability.