▁from ▁the ▁account , ▁withdraw als ▁are ▁subject ▁to ▁federal ▁income ▁tax ▁( see ▁below ▁for ▁details ). ▁This ▁is ▁in ▁contrast ▁to ▁a ▁Roth ▁I RA , ▁in ▁which ▁contributions ▁are ▁never ▁tax - ded uct ible , ▁but ▁qualified ▁withdraw als ▁are ▁tax ▁free . ▁The ▁traditional ▁I RA ▁also ▁has ▁more ▁restrictions ▁on ▁withdraw als ▁than ▁a ▁Roth ▁I RA . ▁With ▁both ▁types ▁of ▁I RA , ▁transactions ▁inside ▁the ▁account ▁( including ▁capital ▁g ains , ▁divid ends , ▁and ▁interest ) ▁in cur ▁no ▁tax ▁li ability . ▁ ▁According ▁to ▁I RS ▁p ension / ret irement ▁department ▁as ▁of ▁July ▁ 1 3 , ▁ 2 0 0 9 , ▁Trad itional ▁IR As ▁( origin ally ▁called ▁Reg ular ▁IR As ) ▁were ▁created ▁in ▁ 1 9 7 5 ▁and ▁made ▁available ▁for ▁tax ▁reporting ▁that ▁year ▁as ▁well . ▁The ▁original ▁contribution ▁amount ▁in ▁ 1 9 7 5 ▁was ▁limited ▁to ▁$ 1 , 5 0 0 ▁or ▁ 1 5 % ▁of ▁the ▁w ages / sal aries / ti ps ▁reported ▁on ▁line ▁ 8 ▁of ▁Form ▁ 1 0 4 0 ▁( 1 9 7 5 ). ▁▁ ▁Trad itional ▁I RA ▁contributions ▁are ▁limited ▁as ▁follows : ▁ ▁Since ▁ 2 0 0 9 , ▁contribution ▁limits ▁have ▁been ▁ass essed ▁for ▁potential ▁increases ▁based ▁on ▁infl ation . ▁ ▁Adv antages ▁ ▁The ▁primary ▁benefit ▁of ▁any ▁tax ▁de ferred ▁sav ings ▁plan , ▁such ▁as