Traditional IRAs

One of the easiest ways to help your clients save for retirement is an old standby: the Traditional IRA. With tax-deductible contributions and tax-deferred earnings, clients can set aside $5,500 a year (or $6,500 for individuals age 50 and older in 2017). The Putnam Traditional IRA delivers these advantages along with convenience and service to help make it easy for clients to invest.

Today's opportunity

For 2017, the maximum contribution is $5,500 ($6,500 for individuals age 50 and older). Talk to your clients and encourage them to take advantage of this important retirement savings opportunity.

Investors who could benefit

  • Individuals who are not active participants in their employers' retirement plans.
  • Individuals covered by an employer's retirement plan with an AGI of $61,000 or less (single) or $98,000 or less (married, filing jointly).
  • Individuals whose earned income is too high to contribute to a Roth IRA.

Take advantage: Putnam Traditional IRA

  • Offers tax-deferred earnings and tax-deductible contributions.
  • May be used for qualified higher education expenses without penalty.
  • Helps investors reduce tax liability, and can possibly help move them into a lower tax bracket.
  • Investors can start a Putnam IRA with as little as $25 a month, and it can be linked to their checking account for easy, convenient, and automatic contributions.

Resources

Use Type
Beginning in 2010 with the elimination of its income cap for conversions, the Roth IRA became available to all investors. Should your clients convert their Traditional IRAs to Roth IRAs? Calculator
Learn more about Putnam's Traditional and Roth IRAs. PDF
Use our IRA Checklist to help evaluate your clients' current financial situation. PDF
Discuss Stretch IRA as a strategy to help clients create a growing financial legacy for their heirs. PDF
Consider using IRS 72(t) as a way to supplement clients' income. PDF
Help your clients convert their Traditional IRA to a Roth IRA. Download our investor education piece for more information. PDF
Help your clients understand all they need to know about RMDs — the required minimum distributions they need to take, and when. Download the investor education piece for more information. PDF
Review the 2017 tax rates, schedules, and contribution limits PDF
Download fillable applications and forms for the Putnam Traditional IRA. Web page

Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.