Who Can Establish a Traditional IRA?
Anyone who has taxable compensation or self-employment income for the year and is under the age of 70 1/2 may establish and fund a Traditional IRA.

Contribution Guidelines
You can set up a Traditional IRA anytime, however your contribution limit for any year is limited. For any tax year, you may contribute the lesser of the regular contribution limit or 100% of your compensation (or earned income). Compensation/earned income includes w ages, salaries, bonuses, tips, professional fees, commissions, self-employment income, or alimony. If you earn less than the maximum contribution limit in annual compensation, you may contribute up to as much as you earn. For any year you do not work, contributions cannot be made to your Traditional IRA unless you receive alimony or file a joint return with a spouse who has compensation. If you reached age 50 by the end of a year, you may contribute an additional catch-up contribution amount. You can make a contribution to a Traditional IRA at any time during the year, or by the due date of your tax return. The contribution limit depends on whether contributions are made only to Traditional IRAs or to both Traditional and Roth IRAs . The following chart outlines current contribution limits:

Spousal IRA Contribution
You may contribute to a spousal Traditional IRA on behalf of your non-working spouse who makes little or no income. Spousal Traditional IRAs are subjected to the same rules and limits as that of regular Traditional IRA participant contributions. Remember that if you also contribute to a Traditional IRA for yourself, both IRAs must be maintained as separate accounts, as Traditional IRAs cannot be held jointly. Of course, in order for you to make a spousal Traditional IRA contribution, you and your spouse must file a joint income tax return. Your combined contribution should not be more than the amount of compensation you report on your tax return. If you or your spouse is covered by an employer plan, you made be limited on the amount of deduction allowed.

Contribution Deadline
IRA contributions must be made by April 15. If April 15 falls on a weekend, the deadline is the next business day. Contributions postmarked on or before April 15 are considered to be made by the deadline.

Making Your Contribution After You File Your Tax Return
Your contribution can be made at any time between January 1 and April 15 of the following year even if you filed your income-tax return before April 15. Should you decide to make your contribution after you file your tax return, be sure to inform your tax professional so that the contribution is included on your tax return. Also, make sure you tell your IRA trustee/custodian which year the contribution is for.

Distribution Guidelines
You can withdraw or use your traditional IRA assets at any time; however, if it is before age 59 1/2, the funds maybe subject to a 10% early withdrawal penalty imposed by the IRS. Certain distributions are exempt from this penalty, such as rollovers which are redeposited to an IRA within 60 days, removal of excess contributions (before the tax return deadline including extensions), transfers resulting from divorce, or distributions of nondeductible IRA contributions. Money withdrawn from a traditional IRA is typically includible in gross income in the tax year received.

If you are the owner of a traditional IRA, you must begin receiving distributions by April 1 following the year you reach age 70 1/2 This is referred to as your required minimum distribution (“RMD”). If you do not take your RMD amount each year you could be subject to a 50% federal tax penalty imposed by the IRS on the amount you should have received – on top of any income tax you might owe on the RMD.