What is a requirement for traditional IRAs regarding contributions?

For traditional IRAs, a key requirement concerning contributions is that they must be established without penalty. This means that individuals should make their contributions within the IRS-established limits and regulations. Contributions to a traditional IRA can only be deducted from income taxes if the individual meets the eligibility criteria, including income limits, and the contributions are made by the tax filing deadline for that year.

While it's true that contributions can typically be made until the tax filing deadline (which is usually April 15th), this does not extend the contribution period to April 1st of the following year as suggested by one of the other choices. Furthermore, contribution limits do exist based on IRS guidelines, so saying there are no contribution limits is misleading. Lastly, while individuals can make withdrawals from their traditional IRAs, these withdrawals are subject to taxes and penalties if taken before the age of 59½, contrary to the claim in another option that implies withdrawals can be made at any age without tax consequences.

The requirement for establishing contributions without penalties emphasizes the importance of understanding how and when to contribute to a traditional IRA, ensuring compliance with IRS regulations and maximizing the benefits of the retirement account.