FREQUENTLY ASKED QUESTIONS
1. What is an IRA?
IRA stands for individual retirement account. An IRA is an account type which could help you set aside money for retirement and may also give you tax advantages.
There are 2 types of IRAs:
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. Currently, the limit on how much money you can put into a Traditional IRA is $5,500 per year. If you are age 50+ you can add on $1,000 as a "catch-up" contribution. 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. The money you put into a Roth IRA is not tax-deductible, meaning you have already paid taxes on it. There are limits on how much you can contribute and whether you can contribute to a Roth IRA that are based on how much money you make (adjusted gross income). When you take the money and any earnings out for retirement (called a distribution), you don't pay taxes on it - as long as you meet certain requirements. In general, you can't take the money out until age 59½ or you will pay a penalty.
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).
With a Roth IRA, the money you put into this account has already been taxed so you won't have to pay any taxes when you withdraw your money during retirement as long as you meet certain requirements.
5. How do I open an IRA?
Go to the 'Open an IRA' section of this website and select the option to:
6. How do I transfer an existing retirement account into an IRA with Capital One 360 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 Capital One 360:
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. Transfers generally take between 4 to 6 weeks to be completed.
Once you have opened a ShareBuilder IRA, use the online tool to transfer your assets.
7. Are there any fees for having an IRA?
There are no minimums or fees for opening an IRA with Capital One 360. If you open an investment account with ShareBuilder, 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):
Important: 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?
Capital One 360 Savings
If you are looking to use an IRA to put money aside in savings, you can open these types of accounts:
If you would like to use an IRA to put money aside in investments, you can open an investment account and choose from these types of investments:
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.
Banking services are provided by Capital One 360, a division of Capital One, N.A., member FDIC.
Securities products are offered by Capital One ShareBuilder, Inc., a registered broker-dealer and Member FINRA/SIPC. Capital One ShareBuilder, Inc. is a subsidiary of Capital One Financial Corporation. Brokerage Financial Statement
Securities products are: Not FDIC insured • Not bank guaranteed • May lose value