If you qualify, a traditional IRA offers a current tax deduction for all or a portion of your contributions.   The Informed Investor's Guide
		Types of IRAs (continued) Traditional (continued) If your spouse participates in an employer-sponsored retirement plan, but you are not eligible, you may still be able to take a tax deduction if you file joint returns and your combined modified adjusted gross income is $150,000 or less. (A partial tax deduction may be available if the income is between $150,000 and $160,000.) If you need to withdraw money from a traditional IRA before you reach age 59½, you'll have to pay income tax and a 10% federal tax penalty on the amount that represents your deductible contributions and earnings (in most cases). There are some exceptions: withdrawals for first-time home purchases; death or disability; qualifying medical expenses and systematic payments over the participant's life expectancy.

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