▁( I RA ), ▁established ▁in ▁the ▁United ▁States ▁by ▁the ▁Employee ▁Ret irement ▁In come ▁Security ▁Act ▁of ▁ 1 9 7 4 ▁( ER IS A ) ▁( , ▁cod ified ▁in ▁part ▁at ▁). ▁Normal ▁IR As ▁also ▁existed ▁before ▁ER IS A . ▁ ▁Over view ▁An ▁author ▁described ▁the ▁Trad itional ▁I RA ▁in ▁ 1 9 8 2 ▁as ▁" the ▁biggest ▁tax ▁break ▁in ▁history ". ▁The ▁I RA ▁is ▁held ▁at ▁a ▁cust od ian ▁institution ▁such ▁as ▁a ▁bank ▁or ▁bro ker age , ▁and ▁may ▁be ▁inv ested ▁in ▁anything ▁that ▁the ▁cust od ian ▁allows ▁( for ▁instance , ▁a ▁bank ▁may ▁allow ▁certific ates ▁of ▁depos it , ▁and ▁a ▁bro ker age ▁may ▁allow ▁stock s ▁and ▁mut ual ▁funds ). ▁Un like ▁the ▁Roth ▁I RA , ▁the ▁only ▁criter ion ▁for ▁being ▁el ig ible ▁to ▁contribute ▁to ▁a ▁Trad itional ▁I RA ▁is ▁sufficient ▁income ▁to ▁make ▁the ▁contribution . ▁However , ▁the ▁best ▁provision ▁of ▁a ▁Trad itional ▁I RA ▁— ▁the ▁tax - ded uct ibility ▁of ▁contributions ▁— ▁has ▁strict ▁el ig ibility ▁requirements ▁based ▁on ▁income , ▁fil ing ▁status , ▁and ▁avail ability ▁of ▁other ▁ret irement ▁plans ▁( m and ated ▁by ▁the ▁In ternal ▁Re venue ▁Service ). ▁Trans actions ▁in ▁the ▁account , ▁including ▁interest , ▁divid ends , ▁and ▁capital ▁g ains , ▁are ▁not ▁subject ▁to ▁tax ▁while ▁still ▁in ▁the ▁account , ▁but ▁upon ▁withdraw al