Welcome to the smart, easy IRA

Open a Schwab IRA by April 17: Roth Traditional Rollover

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Open your Schwab IRA now:

2011-2012 Contribution limits

Chart: Under 50: $5000, Over 50: $6000

2011-2012 Contribution limits

There’s nothing like the power of compounding to make your retirement savings grow. And the sooner you get started, the more time you’ll have on your side.

See for yourself. Enter an annual contribution amount and the year you expect to retire:4

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Open your Schwab IRA now: Roth or Traditional.

A Schwab IRA is the smart, easy way to save

Smart for your money
There are no fees to open1 or maintain your account and a low $1,000 minimum to open. Or get started with no minimum deposit with an automatic monthly transfer of as little as $100.
Smart for your time
Open an account online in about 15 minutes. Or call 800-548-5576 for personal assistance from an IRA Consultant.
Smart for your future
Get online tools and resources, as well as access to a no-cost consultation2 with a Schwab professional who can help you decide which investments are right for you.

See what clients are saying.

Featured Review for Roth and Traditional IRAs

5 star rating

“With Schwab handling my accounts I am at ease knowing I am protected and there are many employees that go the extra mile even without asking. I had a hassle-free experience creating the accounts and I know that Schwab will make things simpler for me in the future.”

Written on 03/03/2011 by Outsourced.3

Read more reviews and other important information about Clients Speak™, Ratings and Reviews by Schwab clients, including publishing guidelines.

Schwab IRA Consultant

Get an IRA that comes with personal guidance.

From choosing your IRA to getting invested, a Schwab IRA Consultant is ready with the help you need. Call 800-548-5576.

Get Started

Open your Schwab IRA now: Roth or Traditional.

Already have a Schwab IRA? Log in to contribute.

Get Started

Open your Schwab IRA now:

Schwab IRA Consultant

Get an IRA that comes
with personal guidance.

From choosing your IRA to getting invested, a Schwab IRA Consultant is ready to help. Call 800-548-5576.

Why choose Schwab?

Smart for your money
There are no account maintenance fees and a low $1,000 minimum to open.3 Or get started with no minimum deposit with an automatic monthly transfer of as little as $100.

Smart for your time
Open an account online in about 15 minutes. Or call 800-548-5576 for personal assistance.

Smart for your future
Get retirement tools and resources, plus access to a no-cost consultation4 with a Schwab professional.

Is a Roth or Traditional IRA right for you? We'll help you decide.

Traditional IRA

You may receive tax breaks today, depending on your situation. Contributions grow tax-deferred but are taxed when you take money out in retirement. Traditional IRAs are a smart solution to increase your tax-deferred savings.

Roth IRA

You won’t receive immediate tax breaks, but qualified distributions of earnings are tax-free. Roth IRAs are a smart solution if you expect to be taxed at a higher rate when you begin making withdrawals.

Confused about your options? Use the IRA Analyzer to help you pick the right IRA for you

Compare at a glance Roth IRA Traditional IRA
Who’s Eligible
 

To make a full contribution, you must have a Modified Adjusted Gross Income of:

  • 2011: Less than $107,000 if single ($169,000 if married filing jointly
  • 2012: Less than $110,000 if single ($173,000 if married filing jointly)

No age restrictions

View eligibility guidelines.

Anyone with earned income may contribute up to age 70½.

View eligibility guidelines.

Tax Advantages
Contributions Not tax-deductible Tax-deductible (subject to certain limitations)
Earnings Tax-free (subject to certain limitations) Taxes are deferred until you begin withdrawing funds.
Withdrawals Qualified withdrawals are tax-free. Taxable
Contributions
Annual limits
  • $5,000; $6,000 if age 50 or older1
  • Contribution amounts are subject to certain limitations.
  • Clients are eligible to convert a Traditional IRA to a Roth IRA. (Restrictions may apply in certain states.)
    Learn more.
Age limit No age limit Up to age 70½
Withdrawals
Tax/penalty consequences
  • Contributions can be withdrawn at any time without taxes or penalties.
  • Earnings can be withdrawn without taxes or penalties if you are age 59½ and your account has been open five years or more.2
  • All earnings and deductible contributions are taxable upon withdrawal.
  • Penalties will be assessed if withdrawals are taken before age 59½ or if withdrawals are not taken by age 70½.
Distribution requirements None Required minimum distributions upon reaching age 70½
Exceptions to penalties Some exceptions are made for accounts in existence five years or more if funds are used for a first-time home purchase, education, or certain medical expenses. Some exceptions are made if funds are used for a first-time home purchase, education, or certain medical expenses.
Minimum to Open
  $1,000 ($0 if you set up an automatic monthly transfer of at least $100) $1,000 ($0 if you set up an automatic monthly transfer of at least $100)

Get Started

Open your Schwab IRA now: Roth or Traditional.

Already have a Schwab IRA? Log in to contribute.

Get Started

Call a Schwab Rollover Consultant at 866-855-5636.

Confused about which IRA to choose?

Use the IRA Analyzer to understand your options, check your eligibility, and pick the right IRA for you.

Why choose Schwab?

Smart for your money
There are no account maintenance fees and a low $1,000 minimum to open.1 Or get started with no minimum deposit with an automatic monthly transfer of as little as $100.

Smart for your time
Open an account online in about 15 minutes. Or call 800-548-5576 for personal assistance.

Smart for your future
Get retirement tools and resources, plus access to a no-cost consultation4 with a Schwab professional.

Rollover

The easy way to take control of your retirement savings.

No service fees and low-cost commissions.

There is no fee to open or maintain a Rollover IRA at Schwab.

  • Service fees: $01
  • Account minimum: $1,000
  • Commissions: $8.95 per online equity trade;2 $0 per Schwab ETF online trade in your Schwab account3

Discover more Rollover IRA features and benefits.

See what clients are saying.

Featured Review for Rollover IRA

5 star rating

“Schwab made it so easy to roll over my retirement account. Customer service was helpful and very knowledgeable. The entire process was much quicker than I had expected.”

Written on 03/03/2011 by Outsourced.5

Read more reviews and other important information about Clients Speak™, Ratings and Reviews by Schwab clients, including publishing guidelines.

Get Started

Open your Schwab IRA now: Roth or Traditional.

Already have a Schwab IRA? Log in to contribute.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Get Started

Open your Schwab IRA now:

Schwab IRA Consultant

Get an IRA that comes
with personal guidance.

From choosing your IRA to getting invested, a Schwab IRA Consultant is ready to help. Call 800-548-5576.

Confused about which IRA to choose?

Use the IRA Analyzer to understand your options, check your eligibility, and pick the right IRA for you.

Why choose Schwab?

Smart for your money
There are no account maintenance fees and a low $1,000 minimum to open.1 Or get started with no minimum deposit with an automatic monthly transfer of as little as $100.

Smart for your time
Open an account online in about 15 minutes. Or call 800-548-5576 for personal assistance.

Smart for your future
Get retirement tools and resources, plus access to a no-cost consultation3 with a Schwab professional.

Frequently asked IRA questions.

What‘s an IRA and why have one?
An Individual Retirement Account (IRA) is one of the best ways to save for retirement. Your IRA contributions can grow tax-free or tax-deferred, which lets earnings in the account compound over time. Money in tax-smart accounts like IRAs and 401(k)s can compound faster than money in taxable accounts.

What‘s the benefit of starting early?
When you start early, even small IRA contributions can have a big impact on your future due to the power of compounded growth. IRA investments are considered tax-smart, which means that your savings can grow much faster than in a taxable account. While it‘s never too late to start, the later it gets, the more you may have to put away to reach your goal.

If I have a 401(k), should I still open an IRA?
To save as much as possible for your retirement, it‘s best to max out both your 401(k) and IRA. Can‘t afford to fully fund both? Consider contributing to your 401(k) at least up to the amount your employer matches. Then contribute to either a Traditional IRA, which typically offers more investment choices than a 401(k), or a Roth IRA, which grows tax-free.2 For more information, read about how to maximize your retirement contributions.

Can I roll over an old 401(k) or other retirement account into an IRA?
If you have assets in an old employer-sponsored retirement plan, it‘s easy to move them into a Schwab Rollover IRA. You get to keep the tax benefits and choose how your money is invested. This could be the right choice for you if you’ve changed jobs or retired.

What are the 2011 and 2012 IRA contribution limits?

  • Under age 50: $5,000
  • Age 50 and over: $6,000

What are the fees and minimums for an IRA?
The minimum to open an IRA at Schwab is $1,000—or you can set up an automatic monthly transfer of at least $100. And there are no account service fees or minimum balance fees.1

What are my IRA investment choices?
You can choose from a wide range of investments—including mutual funds, stocks, bonds, CDs, and more—to help you reach your goals. A Schwab investment professional can help you select the right investments for you during your no-cost consultation3 for Schwab clients.

How do I fund a new Schwab IRA or contribute to an existing one?
You can fund your new Schwab IRA or make contributions to your existing one with an automatic bank transfer, by logging in and transferring funds online (for current Schwab clients), by dropping off a check at a Schwab branch, or by mailing a check.

What do I need to complete my application online?

  • Social Security number
  • Driver‘s license number
  • Employer’s name and address (if applicable)
  • Beneficiary Social Security number(s) and contact information
  • Statement from your current bank or other financial institution, if you're transferring assets or cash to fund your new Schwab IRA online (recommended)

Get Started

Open your Schwab IRA now: Roth or Traditional.

Already have a Schwab IRA? Log in to contribute.