Is a Traditional IRA exclusively for people who make lots of money?

>>1572511

No. Why would you think that?

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>>1572515
tax deductions when you're making a lot of money during your career when you'd contribute to a traditional IRA, versus a Roth IRA where most working class people will be working their entire lives, possibly making more money later in life when they would maybe take the money out, making them pay less than they would have if they used a Traditional IRA.

Am I wrong? Traditional IRAs also have RMD and Roth doesn't, so you can just let it grow even more past 70.5 years old.

REE I WANT AN ANSWER

No, an IRA is for middle and upper middle class, not wealthy.

It has a max contribution of 18.5k per year, so say you're in the wealthy 2% making 250k a year, you'll max out your contribution in 1 pay check.

>>1572511
>Is a Traditional IRA exclusively for people who make lots of money?
It's really more about your tax rate than your income. And while your marginal tax rate and your income are obviously related to a strong degree, two people with the same income can have very different tax rates depending on the nature of their income, deductions, and tax efficiency planning.

As it turns out, the income limit for Roth IRAs ($116,000 single filer) is actually a pretty decent cut-off for when most people start to find the traditional IRA better than the Roth anyway. Some exceptions apply, but as a rule of thumb, if you can contribute to Roth, its probably better than a traditional IRA, and if you can;t contribute to a Roth, a traditional is probably better for you anyway,

>>1573400
>checked

Also, it important to add that if you're self-employed, a SEP-IRA (a type of traditional IRA limited to self-employment income) is an amazing way to shelter income. Among other benefits, the contribution limit is *substantially* higher than a Roth or traditional IRA ($53,000 in 2015).

traditional ira is not deductible if you already have a 401k and your income exceeds $70k

you would have to make no more than $88k then max out your 401k to still be eligible for the deduction
after that a roth is the best youve got unless you hit the income limit for that

>>1573343
The max is $5,500.

>>1573581
That's ROTH IRA and there's a contribution cap between the high 110-130 of AIG. So it's advantages get diminished as you get more wealthy