The Power of Tax-Deferred Compounding in a Traditional IRA

A woman taking a nap

If you’re able to regularly contribute to a Traditional IRA and are eligible to deduct the contributed amount, it can be a powerful supplement to other retirement benefits.

Take a hypothetical example of Amanda (age 40), who maximizes her annual contribution to her Traditional IRA for 25 years to supplement her retirement income.

TIAA-CREF NEWS ARCHIVE

C50025C