FREQUENTLY ASKED QUESTIONS

• 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 Capital One 360 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 account type which could help you set aside money for retirement and may also 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. 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.

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 Capital One 360. The account types available are:
  • Savings Account
  • CDs

OR

• Put money aside in investments in a brokerage account with Capital One ShareBuilder, Inc. Visit Investment Products for information on the types of investment products available to you.

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:

1. Log in to CapitalOne360.com with your Customer Number or Saver ID and PIN
2. Click on your IRA Plan under the My Accounts tab
3. Select the 'Plan Maintenance and Forms' icon
4. Under Common Transactions, click on the Transfer form
5. Print, complete, and mail the form to:
   
   Capital One 360 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. Transfers generally take between 4 to 6 weeks to be completed.

Investment Accounts

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):

• You can have both a Traditional IRA and a Roth IRA
• You can have IRA accounts at more than one financial institution
• With Capital One 360, you can have savings IRAs
• With ShareBuilder, you can have investment IRAs

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:

• IRA Savings Account
• IRA CD

ShareBuilder Investments

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:

• Mutual Funds
• Exchange-Traded Funds (ETFs)
• 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.