Traditional IRAs
Beginning in 1998, four rules for traditional IRAs (IRAs other than
Roth IRAs, SIMPLE IRAs, or Education IRAs) have changed. Generally, you
can now do all of the following.
- Deduct all of your allowable contributions to a traditional IRA
(if you are not covered by an employer plan and you file a joint
return) even if your spouse is covered by a plan.
- Have a higher modified adjusted gross income and still claim a deduction
for contributions to your IRA.
- Make penalty-free early withdrawals from your IRA for qualified
a) Higher education expenses, or
b) Acquisition costs of a first home.
- Invest IRA funds in certain platinum coins and gold, silver, palladium,
or platinum bullion.
For more information on traditional IRAs, see chapter 1 of Publication
590, Individual Retirement Arrangements (IRAs).
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