One of the major benefits of a Traditional IRA is that your yearly contributions are usually tax deductible. Money invested in a traditional IRA is tax deferred and taxed only when money is withdrawn. If you withdraw money before the age of 59 1/2, you are subject to taxes and withdrawal fees. Consider your tax rate at retirement and if it will be lower than it is now, and you aren't going to withdraw money, a Traditional IRA is a great option. This is a wonderful savings to those who are planning and preparing for their retirement.