Yes, it does. It means that your 401K contributions will not be taxed as wages, which - as a result- lowers your taxable income, which ultimately lowers your federal tax on your tax return.
You can open a traditional IRA at any bank or broker... you have until April 17, 2017 to open/make a contribution to a traditional IRA and deduct it on your 2016 tax return. If you are sure you'll open one, you can enter your contributions into TurboTax now and see what is the maximum amount that will give your the most benefit... Here's some more information: <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Deductions-Allowed-for-Contribu...>
