A Traditional IRA allows individuals to save pre-tax money into a retirement account. All contributions made into a Traditional IRA grow on a tax deferred basis. Upon distribution, all money will be taxed at the appropriate ordinary income rate. Distributions prior to the age 59 ½ will incur an additional 10% penalty in addition to the ordinary income tax. These accounts are often used by individuals want to save for retirement, but their employer doesn’t offer a company plan, or by someone who wants to roll funds out of a previous employer’s retirement account. Alaska Retirement Solutions makes it easy for Alaskans to start financially preparing for retirement by helping them open and save into their new Traditional IRA’s.