Retirement Planning

Traditional IRAs

A Traditional IRA is a retirement savings account that offers tax-deferred earnings growth. Contributions to the IRA may be fully or partially tax-deductible, depending on an individual's income level and participation in an employer's retirement plan.

To contribute to an IRA, a person must have "earned income," which is essentially income from employment with a business, or self-employment. Our IRA Choices brochure provides more information on how this works.

Who Might Consider a Traditional IRA?

  • Someone who wants an up-front tax deduction and falls within the income limits set by the Internal Revenue Service
  • Someone whose income is too high for a Roth IRA and wants to benefit from tax-deferred earnings growth in their retirement account

Tax Advantages of a Traditional IRA

  • Tax-deferred growth potential
  • Tax-deductible contributions based on income limits and whether the person takes part in an employer's retirement plan
  • Fully deductible contributions for spouses not covered by employer plans if joint income is $184,000 or less for 2016


The maximum annual contribution is $5,500 per person ($6,500 if age 50 or older) or 100% of earnings, whichever is less, for 2016

  • Contributions are fully deductible for participants in employer retirement plans whose Modified Adjusted Gross Income is $98,000 or less (if filing jointly) and $61,000 or less (single filers) in 2016*
  • Contributions are partially deductible for participants whose Modified Adjusted Gross Income is between $98,000 and $118,000 (if filing jointly) or $61,000 and $71,000 (single filers) for 2016*

* The IRS may adjust these limits in the future.

An AB Traditional IRA Provides:

  • Flexibility in choosing from a wide array of AB mutual funds, from fixed-income to equity as well as Wealth Strategies asset-allocation funds and Multi-Manager Select Retirement Funds.
  • Access to account and fund information online and on the phone.
  • Customer service representatives that are available Monday through Friday from 8:30 a.m. to 7:00 p.m. EST.
  • The maximum annual contribution is $5,500 per person ($6,500 if age 50 or older) or 100% of earnings, whichever is less, for 2016.

This material does not constitute, and should not be considered to be, legal or tax advice. The tax rules are complicated and their impact on a particular individual may differ depending on the individual's specific circumstances. Please consult with your legal or tax advisor regarding your specific situation.


Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, click here or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside the United States.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds.

Investment Products Offered:

Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.