Learn about the IRAs we support

Below you’ll find the types of IRAs we currently support – backed by our Schwab Institutional and Fidelity Investments Custodial relationships.

Contributory IRA (Traditional IRA)

An individual retirement account (IRA) that allows individuals to direct pretax income (up to specified annual limits) towards investments that can grow tax-deferred (no capital gains or dividend income is taxed).

Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors.

Rollover IRA

An IRA that is opened with the transfer of holdings of one retirement plan to another without suffering tax consequences.

SEP IRA

Simplified Employee Pension IRA is a retirement plan that an employer or a self-employed individual can establish. The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee’s SEP IRA on a discretionary basis.

Spousal IRA

A Traditional or Roth IRA established and funded by an individual for his or her spouse.

Stretch IRA

The Stretch IRA is a wealth transfer method that allows individuals the potential to extend their IRAs over several future generations. IRA owners are required to take minimum distributions at age 70.5 based on an IRS life expectancy table.

Those who inherit someone else’s IRA will be required to take minimum distributions each year from the IRA account based on their life expectancy figure, regardless of age. This might require the beneficiary to take more taxable income from the IRA than what he/she needs when he/she inherits the IRA.

Naming younger beneficiaries (such as grandchildren or great-grandchildren) allows individuals to stretch the value of the IRA over multiple generations. Younger generations required minimum distribution (RMD) figure would be much less than an older beneficiary.

Conduit IRA

Only assets that were distributed from a qualified plan are held in traditional IRAs. Typically, the intention of using this type of plan is to store assets until the right time and then roll them into a new employer’s qualified plan.

Roth IRA

An individual retirement plan that bears many similarities to the traditional IRA. However, contributions are not tax-deductible, and qualified distributions are tax-free. Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty for withdrawal.

Inherited IRA

An individual retirement account that is left to a beneficiary after the owner’s death. If the owner had already begun receiving required minimum distributions (RMDs) at the time of his or her death, the beneficiary must continue to receive the distributions as already calculated or submit a new schedule based on his or her life expectancy.

Self-Directed IRAs

At this time, we are not positioned to custody or administer these IRA instruments. Please contact us if you need a list of companies we work with.

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