Answer
True
Work Step by Step
An individual retirement account is an example of an annuity where person deposited the equal amount till his retirement to get benefits later.
Traditional IRA is considered as a savings plan where you can set aside a sum of money for retirement. People under 50 can sum up to the amount of \$5,500 per year and people 50 or older than 50 can sum up to the amount of $6,500 per year.
Traditional IRA is tax-exempt but you have to pay the tax on the withdrawals. The withdrawals can be started after reaching the age of \[59\frac{1}{2}\] or older.
Hence, the given statement is true.
