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According to statistics, an average American lives up to 20 more years after retirement. This is why you need to make plans for a stress-free post-retirement life. An average man in the United States has about 118,000 US dollars saved at the time of retirement. This number can be increased with smart investments and saving plans like investing in gold for precious metal IRA.

IRA–what is it?

Individual Retirement Account (IRA) is a savings account that people can use for a comfortable post-retirement life. It was formed by an act enforced in the Internal Revenue Code of 1986. IRAs offer working-class people the chance to invest in commodities and have them grow tax-free until their retirement.

IRAs can be financed at any time during your working years. IRAs can also help supplement your Social Security benefits throughout retirement. You can start funding your account with your annual savings and invest without tax obligations.

IRAs are generally of two types:

  • Traditional IRA
  • Roth IRA

Traditional IRA–what is it?

Traditional IRA is one of the most common retirement plans in the USA. This type of IRA allows individuals to send pre-tax earnings towards their investments accounts. These savings grow as a tax-free asset until the individual withdraws this money. The IRS charges no dividend taxes or capital gains from the stored asset until then. 

Limit of Contribution

Individual taxpayers can contribute 100% of their earned income up to a certain dollar limit. This limit was capped at $5000 for the average person and $6000 for senior citizens. The new act has raised the capped amount to $6000 while the elderly can contribute $7000 annually.

The Advantages of Traditional IRA

Following are a few of the advantages of traditional IRA:

Tax-Free Growth

One of the biggest advantages of this IRA is the tax-deferred growth of the asset. This means that whether you have stocks, bonds, or precious metals stored in your account, their value would change according to the market without charging you any capital.

Deductible Contributions

The advantage of a traditional IRA is that you can deduct your contributions. This makes this investment account particularly appealing if you anticipate paying a lower tax rate after retirement.

Generally, working-class citizens fall in a lower tax bracket post-retirement. So, if you withdraw the assets with a lower tax rate, you would end up paying less than filing for a deduction at the time of employment.

Substitute Retirement Plan

You can get a traditional IRA even if you have a 401k, employer’s benefits, or other retirement plans.


An individual with a traditional IRA can pass it on to another beneficiary if they want to.

A jar full of coins and a plant symbolizing sustainable savings

Orion Metal Exchange is a gold investment dealer and IRA consultant, serving our clients for over 50 years. We’re located in Los Angeles but have our reliable services available across the country.

We specialize in offering secure gold & silver storage, Rollover gold 401k, and the best precious metals IRA in the country.

Get in touch with us to learn more about our services, or check out our store to buy gold bullion bars and coins online.