A type of savings account for retirement. If your income is below a certain level or you are not covered by a retirement plan at work, deposits into a traditional IRA may be deducted on your tax returns. Deductions on IRA contributions apply less to those covered by a retirement plan at work at higher income levels. Since 2008, for single taxpayers covered by a company plan, the deduction phases out as income reaches the $53,000 to $63,000 level. For married couples filing joint returns, the deduction phases out as income reaches the $85,000 to $105,000 level.