• What is an IRA?
• What is a Traditional IRA?
• What is a Roth IRA?
• What is the difference between Traditional and Roth IRAs?
• How do I open an IRA?
• How do I transfer an existing retirement account into an IRA with ING DIRECT or ShareBuilder?
• Are there any fees for having an IRA?
• Can I have more than one IRA?
• What saving and investing options are available in an IRA?
• Can I open a joint IRA account with my spouse?

1. What is an IRA?

IRA stands for individual retirement account. An IRA is an option which could help you set aside money for retirement and could possibly give you tax advantages.

There are 2 types of IRAs:

• Traditional IRA
• Roth IRA

2. What is a Traditional IRA?

A Traditional IRA gives you the ability to set aside money for retirement by making tax-deferred contributions to a savings or investment account. Your contributions may also be tax-deductible. The money you've put into the account and any earnings are not taxed until you take the money out (called a distribution). In general, you can't take the money out until age 59½ or you will pay a penalty.

3. What is a Roth IRA?

A Roth IRA gives you the ability to set aside money for retirement by making contributions to a savings or investment account. Before you put money into a Roth IRA, you pay taxes on it. Then, if you take the money and any earnings out (called a distribution) for retirement you don't pay taxes on it - as long as you meet certain requirements. There are limits on how much you can contribute to a Roth IRA that are based on how much money you make (your adjusted gross income).

4. What is the difference between Traditional and Roth IRAs?

With a Traditional IRA, money that you contribute may be deductible on your annual income taxes and earnings aren't taxed until the time of your withdrawal (called a distribution).

This IRA is excellent for anyone eager to save for retirement and reduce taxes at the same time.

With a Roth IRA, you pay taxes on your contributions, but you won't have to pay any when you withdraw your money later in retirement.

Compare Traditional IRAs and Roth IRAs

5. How do I open an IRA?

Go to the 'Open an IRA' section of this website and select the option to:

• Put money aside in savings – in a deposit account with ING DIRECT. The account types available are:
  • Savings Account
  • CDs

OR

• Put money aside in investments – in a brokerage account with ShareBuilder from ING DIRECT. The investment types available are:
  • Mutual Funds
  • Exchange-Traded Funds (ETFs)
  • Target-Date Funds
  • Stocks

6. How do I transfer an existing retirement account into an IRA with ING DIRECT or ShareBuilder?

If you don't have one already, the first step is to open an IRA. Then, follow the instructions below to transfer funds or assets from another financial institution.

Savings Accounts and CDs

Follow these instructions to request a transfer into your IRA Savings Account with ING DIRECT:

1. Log in to ingdirect.com with your Customer Number or Saver ID and PIN
2. Click on your IRA Plan
3. Select the 'Plan Maintenance and Forms' icon
4. Click on the Request for Trustee Transfer form
5. Print, complete, and mail the form to:
   
   ING DIRECT IRA Servicing
   PO Box 60
   St. Cloud, MN 56302

Before you initiate a transfer, please contact the other financial institution to see if there are other steps you have to take to authorize the transfer.

Investment Accounts

Follow these instructions to request a transfer into your IRA with ShareBuilder from ING DIRECT:

1. Log in to your ShareBuilder account
2. Go to Accounts > Forms & Applications
3. Click on the Transfer assets from another brokerage to ShareBuilder form
4. Print, complete, and mail the form to:
   
   ShareBuilder Securities Corporation
   PO Box 1728
   Bellevue, WA 98009-1728

Before you initiate a transfer, please contact the other brokerage to see if there are other steps you have to take to authorize the transfer. Once ShareBuilder receives your paperwork, a message will be posted to your account. Transfers generally take 4-6 weeks to be completed.

The funds and assets in the other investment account must be in the same type of account. For example, if you have a Roth IRA with ShareBuilder, the account at the other brokerage must be a Roth IRA as well.

7. Are there any fees for having an IRA?

There are no minimums or fees for opening an IRA with ING DIRECT. If you open an investment account, there may be trade commissions or service charges assessed. In an investment account, you'll have the option to invest in no-load, no transaction-fee mutual funds.

8. Can I have more than one IRA?

The answer is yes (as long as you meet eligibility rules for contributing to an IRA):

• You can have both a Traditional IRA and a Roth IRA
• You can have IRA accounts at more than one financial institution
• With ING DIRECT, you can have savings IRAs and investment IRAs

The contribution limits for your IRAs will apply across all of your IRA accounts at all financial institutions.

9. What saving and investing options are available in an IRA?

Saving

If you are looking to use an IRA to put money aside in savings, you can open these types of accounts:

• IRA Savings Account
• IRA CD

Investing

If you are looking to use an IRA to put money aside in investments, you can open an investment account and choose from these types of investments:

• Mutual Funds
• Exchange-Traded Funds (ETFs)
• Target-Date Funds
• Stocks

10. Can I open a joint IRA account with my spouse?

IRAs are individual accounts, so you can't open a joint IRA with your spouse. However, you may be able to open and make contributions to a separate IRA for your spouse (sometimes called a spousal IRA).

A spousal IRA is just a Traditional or Roth IRA that is opened and funded by an individual for his or her spouse. Typically, spousal IRAs are opened when the spouse has little or no income. The contribution limits and eligibility requirements are the same as a regular IRA.