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If you want to pay less income tax, you may be interested in a traditional individual retirement account (IRA). Besides providing your retirement nest egg, the contributions you make may be tax-deductible. The rules can be complex, though. This tutorial will explain the rules for determining how much of your contributions you can deduct from your taxes. After you have read it, you should have a better understanding of your own deduction privileges. Here is what we will discuss:
- What Is a Traditional IRA?
- What Are the Tax Advantages of a Traditional IRA?
- Who May Make Deductible IRA Contributions?
- IRA DEDUCTION FOR MARRIED FILERS WHEN ONE SPOUSE HAS ANOTHER RETIREMENT PLAN?
- SUMMARY OF THE TRADITIONAL IRA
We'll begin with some background on the traditional IRA.