Traditional IRA
May be a good option if you expect to be in the same or lower tax bracket when you retire. If you’re looking for an easy way to build your retirement portfolio and want to defer paying taxes until after you retire, a Traditional IRA (individual retirement account) could be a good choice.
Is a Traditional IRA right for me?
I'm in my peak earning years
Because your income (and tax bracket) is likely higher than it will be when you retire, contributing to a tax-deferred plan now may save you tax dollars later.
I want to to invest smart
Contributing earlier helps to maximize the compound growth potential of your investments. Your contributions work harder as they may accumulate earnings and grow tax-deferred until you’re ready to start enjoying your retirement.
I can invest at least $1,000
You must have taxable compensation to be eligible to contribute. While there are no income limit restrictions to contribute, there could be a limit on tax deductions if you also contribute to an employer-sponsored retirement plan.
I'm interested in tax benefits now
All or part of your contributions may be tax-deductible, which may reduce your taxable income, each year you contribute.
I expect a lower tax rate in retirement
You may be able to hang on to more of your hard-earned dollars during retirement if you’re in a lower tax bracket when you begin withdrawing.
Not sure which IRA is right for you?
It starts with understanding the differences.
Select your investments. Your way.
Easy and age-based
T. Rowe Price’s ReadyChoiceSM IRA pairs a Roth or Traditional IRA with a T. Rowe Price Retirement Fund for a simpler solution.
A range of funds
Choose from our screened list of Select Funds, or browse more than 100 mutual funds to suit your investing needs.
Custom portfolio and financial plan
For clients with $250,000 to invest, Retirement Advisory ServiceTM offers a personalized financial plan, investment recommendations, and access to your advisor anytime.
An IRA may be subject to an annual fee, and a fee may be assessed when an IRA is closed.
Find a Retirement Fund that fits your time horizon.
A Retirement Fund can be a convenient way to invest in your retirement. You choose your fund with the target date closest to the year you plan to retire (assumed to be age 65). The fund's investment mix automatically adjusts during your working years and throughout retirement, becoming more conservative over time.
Build a portfolio with a Traditional IRA.
Diversified investments
The Retirement Funds are investing in a highly diversified lineup of specially selected T. Rowe Price funds. The overall mix of stocks and bonds changes over time to a more conservative allocation.
Historically strong long-term risk-adjusted returns
Invest in funds that beat the average. Over 90% of our Retirement Funds with a 10-year track record beat their 10-year Lipper average as of 9/30/2025.*
Thoughtful risk management
Your consultant will guide you through the process of initiating the rollover from your current plan provider and inform you when your account is funded.
Frequently Asked Questions
Can I contribute to an IRA for my spouse?
If you are married and file a joint tax return, each spouse can make a contribution up to the current limit; however, your combined contributions can’t be more than the taxable compensation reported on your joint return.
Can I make automatic contributions to my IRA?
Our Automatic Buy service allows you to make recurring contributions of at least $100 directly into your mutual fund accounts.
Log in to add or update automatic transactions.
Investing a consistent amount cannot assure a profit or protect against loss in a declining market. Since such a plan involves continuous investment in securities regardless of fluctuating price levels, investors should consider their financial ability to continue purchases through periods of low and high price levels.
Are there IRA contribution limits?
Annual contribution limits for your combined IRAs are adjusted periodically by the IRS. You can contribute up to $7,000 ($8,000, if age 50 or older) for 2024 and $7,000 ($8,000, if age 50 or older) for 2025.
What should I do if I've inherited an IRA or employer-sponsored retirement plan assets?
You can take ownership of assets inherited from an IRA or employer-sponsored retirement plan, such as a 401(k), which can be rolled into your own IRA,** provided you are a spouse beneficiary.
Non-spouse individual beneficiaries of an IRA or an employer-sponsored retirement plan, such as a 401(k), can roll over their inherited retirement account assets into an Inherited IRA.
Inherited IRAs must be established through a direct trustee-to-trustee transfer. If the beneficiary receives the distribution directly from the IRA or retirement plan, the money is not rollover-eligible and may not be invested in an Inherited IRA.
For assistance, call 1-877-200-5503.
Grow your retirement with us
Invest with a Traditional IRA
Build your retirement savings while taking advantage of tax benefits today.
Is a Traditional IRA right for you?
Speak with one of our financial consultants.
Monday–Friday, 8 a.m.–8 p.m. ET
Understanding Traditional IRAs
Learn about how a Traditional IRA may fit into your retirement plan.
The principal value of the Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The funds’ allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term postretirement withdrawal horizon. The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
(*) 39 of our 60 Retirement Funds had a 10-year track record as of 9/30/2025 (includes Investor, I Class, Advisor, and R Class Shares). 36 of these 39 Retirement Funds (92%) beat their Lipper average for the 10-year period. 29 of 56 (51%), 29 of 42 (69%), and 28 of 39 (71%) of the Retirement Funds outperformed their Lipper average for the 1-, 3-, and 5-year periods ended 9/30/2025, respectively. Calculations are based on cumulative total return. Not all retirement funds outperformed for all periods. (Source for data: Lipper Inc.) Past performance is no guarantee or a reliable indicator of future results.
(**) Consider all available options, which include remaining with your current retirement plan, rolling over into a new employer's plan or IRA, or cashing out the account value. When deciding between an employer-sponsored plan and IRA, there may be important differences to consider, such as range of investment options, fees and expenses, availability of services, and distribution rules (including differences in applicable taxes and penalties). Depending on your plan's investment options, in some cases, the investment management fees associated with your plan's investment options may be lower than similar investment options offered outside the plan.
All investments involve risk, including possible loss of principal. Diversification cannot assure a profit or protect against loss in a declining market. T. Rowe Price does not provide tax advice. Please consult your tax or financial professional regarding questions specific to your situation.
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, call 1-855-405-6488 or visit troweprice.com. Read it carefully.
T. Rowe Price Investment Services , Inc. ("TRPIS"), distributor, T. Rowe Price mutual funds and T. Rowe Price ETFs.
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