IRA FAQ

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What types of IRAs are available?

Traditional IRA, Rollover IRA, Roth IRA, Simplified Employee Pension (SEP) IRA and Savings Incentive Match Plan for Employees (SIMPLE) IRA are all available.

Beneficiaries

Can I change the beneficiary on my IRA?

Yes, to change the beneficiary(ies), complete an IRA Change of Beneficiary form.

 

Contributions

How much can I contribute?

Contribution limits vary. Please read about IRA Contributions.

 

Distributions

How much can I withdraw?

Distribution rules vary. Please see IRA Distributions

 

Can I take an early distribution?

Calculate the risks and benefits with our Early Payout Planner. Consult your tax professional for more information on early withdrawal penalties.

Fees

What are the fees?

There are no set up or maintenance fees for an IRA. Commissions, service fees, and exception fees still apply. We charge a management fee in addition to the Custodian simple trading fees

IRS reporting

How are my IRA transactions reported?

All funds coming into an IRA are reported to the IRS and also mailed to our clients on Form 5498. Form 5498 covers the period between January 1 and April 15 of the following year. Please note that for 2011 tax year, Form 5498 covers the period from January 1, 2011 to April 17, 2012. These forms are mailed by May 31 for the preceding tax year.

If you remove funds from your account during the calendar year, you will receive a 1099-R form showing the amounts reported to the IRS. These forms are mailed by January 31 for the preceding calendar year.

Direct Transfers are not reported to the IRS and will not show on either of these forms.

If you have any additional questions on how your IRA transactions are reported, please consult your tax advisor or visit the IRS Web site at www.irs.ustreas.gov.

How will my conversion be reported?

The value of your conversion to a Roth IRA will be reported on Form 1099-R from your Traditional IRA. It will also be reported as a conversion amount on Form 5498 from your Roth IRA. For more information on these forms, consult your tax advisor or visit the IRS Web site at www.irs.ustreas.gov.

 

Transfers & Rollovers

Can I move money from my Traditional IRA to my Roth IRA?

Yes. This is a Roth IRA Conversion

Can I change my Roth IRA to a Traditional IRA?

Changing all or a portion of an IRA contribution from one type of IRA to another is called a “recharacterization.” You may recharacterize a contribution, a conversion or both. In each instance, a completed IRA Recharacterization Form is required. In addition, both types of IRAs involved must be established  to facilitate the movement.

What is considered a Qualified Retirement Plan?

The following are designated as qualified retirement plans and may be transferred to certain types of IRAs: Money Purchase, Pension, Profit Sharing, Keogh, Defined Benefit and Defined Contribution.

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