A traditional IRA can be a powerful retirement-savings tool but you need to understand contribution limits, RMDs, rules for beneficiaries under the SECURE Act and more. The traditional IRA is one of the best options in the retirement-savings toolbox.

Can you lose all your money in an IRA?

Understanding IRAs

An IRA is a type of tax-advantaged investment account that may help individuals plan and save for retirement. IRAs permit a wide range of investments, but—as with any volatile investment—individuals might lose money in an IRA, if their investments are dinged by market highs and lows.

Are traditional IRAs worth it?

A traditional IRA is a good option for saving pre-tax money for retirement if: Your employer doesn't offer a retirement plan. You want to save even more for retirement after maxing out your 401(k).