Which statements are true regarding a traditional individual retirement account? Choose three correct answers.

A traditional IRA is opened by an individual, not created by an employer, so A is false. People can generally contribute while they have eligible compensation, subject to age and other rules; contributions may be tax-deductible and can reduce taxable income. The amount that can be contributed is capped each year. Withdrawals before age 59½ are generally subject to a penalty, so E is false.

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