Chapter 1 Traditional IRAs This chapter discusses the original IRA. In this publication theoriginal IRA (sometimes called an ordinary or regular IRA) is referredto as the "traditional IRA." Two advantages of a traditional IRAare that you may be able to deduct some or all of your contributionsto it, depending on your circumstances, and, generally, amounts inyour IRA, including earnings and gains, are not taxed until they aredistributed. What Is a Traditional IRA? Who Can Set Up a Traditional IRA? When and How Can a Traditional IRA Be Set Up? How Much Can Be Contributed? How Much Can I Deduct? Can I Move Retirement Plan Assets? When Can I Withdraw or Use IRA Assets? Are Distributions Taxable? What Acts Result in Penalties?