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What are the benefits of a Vanguard traditional IRA?

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Benefits of a Vanguard traditional IRA include tax deferred growth, tax deductible contributions, no sales commissions, and the ability to contribute regardless of income, states the Vanguard website. In the 10-year period ending March 31, 2015, 183 of 198 funds from Vanguard performed better than Lipper peer-group funds averaged.

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A lack of sales loads, 12b-1 fees and account services fees help to keep mutual fund expense ratios at 82 percent below industry average, explains Vanguard. If a Vanguard client signs up for the available e-service package, there are no account service fees charged.

Vanguard and non-Vanguard mutual funds and ETFs, individual stocks and bonds, and Target Retirement Funds are available IRA investment options, notes Vanguard. Non-Vanguard products do require a trading commission. Investments are available for new and experienced investors. The financial volume of funds managed make Vanguard one of the largest mutual fund companies.

Contributions to a traditional IRA stop after the age of 70 1/2. A required minimum distribution is scheduled for an account prior to April 1 of the following calendar year, according to Vanguard. A withdrawal taken from an IRA prior to age 59 1/2 is frequently subject to a 10- percent penalty in addition to ordinary income tax.

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