Lower Tax Liability

• The contributions to a traditional IRA account grow tax-deferred, so no capital gains taxes are due until the money is withdrawn. This reduces the individual's tax liability.
  
  

Deductibility

• Contributions to a traditional IRA are tax-deductible, based on a number of factors such as the investor's tax filing status and modified adjusted gross income. This enables the investor to lower his or her taxable income today, while saving for retirement in the future.
  
  

Flexible Eligibility Requirements

• Almost anyone can qualify to establish a traditional IRA, because the eligibility requirements are relatively flexible. For example, unlike most other retirement plans including the Roth IRA, there are no income limits imposed for eligibility purposes.
  
  

Compound Interest

• The deposits in an IRA account not only earn interest on the investor's contributions but also on the interest earned from those original contributions.
  
  

Bankruptcy Protection

• In the event of a bankruptcy, contributions to a traditional IRA are protected from creditors by federal law.
  
  

Self-Directed

• The investor has full discretion over the investment decisions and strategies for the contributions he makes to a traditional IRA.