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Broker-assisted orders are an
additional $10.
Option Trading in an IRA
Investrade allows option trading in IRA's based on investor's individual suitability. Option trading in IRAs includes call buying, put buying, cash-secured put writing, spreads, and covered calls. Unsecured (naked) puts and naked call transactions are not permitted in IRAs. We reserve the right to determine what trading is suitable for an IRA.
Auto Trade in Your IRA
Execute stock, option, or mutual fund trades automatically, based on your newsletter's trade alerts. Click here for more information.
Quicklinks
Traditional IRA
A Traditional IRA is a personal savings plan that gives you tax advantages for saving for retirement. Contributions to a Traditional IRA may be tax deductible–either in whole or in part. Also, the earnings on the amounts in your IRA are not taxed until they are distributed. The portion of the contribution that was tax deductible also does not get taxed until distributed.
You can set up and make contributions to a Traditional IRA if:
- You (or, if you file a joint return, your spouse) received taxable compensation during the year, and
- You were not age 70½ by the end of the year
You can have a Traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. There is no income eligibility limit to contribute.
Get started now.
You may download account forms or request an account kit by calling 1-800-498-7120.
Rollover IRA
Consolidate all of your IRAs into one convenient account.
A rollover is the process of moving your retirement savings and assets from one retirement plan to another retirement plan. The contribution to the second retirement plan is called a “rollover contribution.”
A 401(k) rollover from a previous employer's plan could be beneficial if you are changing employers, retiring or already enjoying retirement. Rolling over to an IRA usually allows you to keep your savings tax-deferred, avoids early withdrawal penalties and typically gives you a broader choice of investments.
In additional to web-based trading and low commissions, access other investment products including:
- Certificates of Deposit (CDs)
- Fixed income products such as government and corporate bonds. Click here for Current Fixed Income Offerings
- Nearly 600 Mutual Fund Families
To consolidate all of your IRAs into one convenient No Annual Fee account:
- Open an Investrade Rollover IRA account
- Contact your former employer(s) for their rollover requirements
- Notify your former plan of your Investrade account number and with transfer instructions
Where can you rollover to? Rollover Chart
For more information on making the decision to rollover your plan(s), visit the IRS Retirement Plans Community
Investrade does not charge annual IRA or other miscellaneous fees, but you may be subject to fees or other limitations with respect to a rollover transaction or account consolidation.
Investrade does not provide tax advice and you should seek the advice of a tax-planning professional with regard to your personal circumstances and fully understand how an investment may affect your tax liability.
A $50.00 closing fee applies to closed or outgoing Investrade IRA transfers.
Roth IRA
Unlike a Traditional IRA, a Roth IRA offers tax-deferred growth and potentially tax-free withdrawals once you reach retirement. For example, contributions to a Roth IRA are not tax deductible while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income as long as you satisfy the requirements.
Benefits of a Roth IRA
- Contributions can be made to your Roth IRA after you reach age 70½
- You can leave amounts in your Roth IRA as long as you live
- Withdrawals of contributions are free from federal income tax
- Withdrawals of earnings are free from federal income tax if you satisfy the requirements:
- If it been at least 5 years from the beginning of the year in which you first set up and contributed to a Roth IRA
- You are age 59½ or older at the time of distribution
- If the distribution being used to buy or rebuild a first home
- If you have become disabled or have passed away
If you do not meet the requirements, the portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax.
You may download account forms or request a Roth Account Kit by calling
1-800-498-7120.
Coverdell ESA
Saving for college can be simple with the right investment program. A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education in elementary, secondary, and post-secondary educational institutions.
Coverdell ESA Highlights:
- Contribute up to $2,000 per year until the beneficiary’s 18th birthday. (If you meet the eligibility requirements. Eligibility varies depending on the income level of the contributor).
- Beneficiary may have more than one account in his or her name.
- Contributions to a Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until distributed.
- Withdrawals may be used for K–12 expenses as well as college.
- Account earnings grow tax-deferred. Distributions are typically tax-free when the money is used before the beneficiary reaches the age of 30 and is used for qualified education expenses, such as tuition, fees, books, and room and board.
SEP IRA
An Easy, Low-Cost Retirement Plan
A SEP is a Simplified Employee Pension Plan in which employers make contributions to traditional IRAs set up for employees, including self-employed individuals (subject to certain limits). A SEP is funded solely by employer contributions. Each employee is always 100% vested in or, has ownership of all money in his or her SEP IRA.
SEP Highlights:
- Can be setup by a business of any size, even a self-employed individual
- Is easy to set up and operate
- Has low administrative costs
- Also, have flexible annual contribution obligations–a good plan if cash flow is an issue.
SIMPLE IRA
A SIMPLE IRA plan is a Savings Incentive Match Plan for a small business with 100 or fewer employees. Employees and employers can contribute to Individual Retirement Accounts set up for employees; subject to certain limitations. Each employee is always 100% vested in or has ownership of all money in his or her Simple IRA.
Simple IRA Advantages:
- Easy to set up and run.
- Administrative costs are low.
- Employees contribute on a tax-deferred basis, through convenient payroll deductions.
- Employers can choose to either match employee contributions or contribute a fixed percentage of all eligible employees’ pay.
Solo 401(k)
Solo 401(k) for Self-Employed Individuals
A Solo 401(k) is specifically for self-employed individuals or business owners who have no full time W-2 employees other than themselves and/or their spouse. Sole proprietorships, independent contractors, partnerships, and corporations (subchapter S and C corporations) qualify for a Solo 401(k).
For sole proprietors, the Solo 401(k) offers the same plan options, contribution limits, and flexibility available in 401(k) plans for companies with multiple employees. As a result, self-employed business owners can maximize their retirement contributions.
The deadline for establishing a Solo 401(k) is December 31 of the year in which you would like to receive the tax deduction or your fiscal year end.
Key Benefits of a Solo 401(k)
- Higher Contribution Limits: Tax-deferred contributions can be up to three times that offered by other types of retirement plans
- Flexible Annual Contributions: Plan contributions can be increased or decreased or stopped on a year by year basis
- Consolidation: Ability to consolidate assets from Traditional IRAs or other retirement plans
- Tax Deferred Growth: Contributions and investment earnings grow tax deferred
Employee Profit Sharing Plan (PSP)
Invest in Stocks, Options*, Mutual Funds, and Fixed Income Products
Employee Profit Sharing Plans for small business are convenient, easy to establish, and require no annual fees for employees.
As an employer, contributions to a profit sharing plan are discretionary. Having a profit makes it easier to contribute, but you don’t need profits in order to make contributions to a profit sharing plan. There is no set amount that you need to make allowing greater flexibility in contributions which are strictly discretionary.
Highlights:
- You may have other retirement plans
- Money goes into a seperate account for each employee
- Only the employer contributes
- You can have a business of any size
- Must file Form 5500 annually
Consult with your tax professional to ensure the plan you choose is suitable for your business profile.
* Eligibility to trade options in an IRA is determined by individual suitability.
Qualified Money Purchase Plan (MPP)
Money Purchase Retirement Plans For a Business of Any Size
Money Purchase Retirement Plans have a required contribution percentage made by the employer, on behalf of the plan participants each year. You can make the plan as simple or as complex as you want. There are also pre-approved Money Purchase Plans available to simplify administrative tasks.
If you establish a Money Purchase Plan, you:
- May have other retirement plans
- Can have a business of any size
- May contribute as an employer and/or an employee
- Possibly may grow a larger account balance than under some other arrangements
Build Your Retirement Savings
Open an Investrade No Annual Fee IRA
With the beginning of a new year, there is no better time than the present to plan for retirement. Setting goals and maximizing your earnings to build your retirement savings is important at any age.
Investrade offers a wide variety of choices to take charge of your retirement, regardless of where you are in life, all with no minimums and no annual, hidden or maintenance fees.
Our financial professionals can assist you in opening a new IRA or transferring, converting, or rolling over an existing retirement plan.
Choose the Right Retirement Account for You
| Traditional | Rollover | Roth | Education |
| SEP IRA | SIMPLE IRA | Solo 401(k) |
| Employee Profit Sharing Plan | Qualified Money Purchase Plan |
New Roth Conversion Opportunities
Is a Roth Conversion Right for You?
Beginning January 1, 2010, there are new Roth conversion opportunities. You may become newly eligible to convert a Traditional IRA and other retirement savings to a Roth IRA, regardless of your income level or filing status.
Prior to 2010, individuals or couples with modified adjusted gross income in excess of $100,000 were ineligible to convert retirement savings to a Roth IRA. The income limits and marital status requirements that previously applied to Roth conversions were repealed by the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA).
When you convert to a Roth IRA, you must pay income tax on the otherwise taxable amount of the transfer. If you convert in the year 2010, you can spread your tax liability over two years, paying ½ of the taxes owed on the conversion in year 2011 and the other ½ in year 2012. To maximize the benefits of conversion, the money to pay those taxes should come from a source outside the Traditional IRA you are converting. Whether this strategy makes sense for you depends on your personal situation and your financial goals.
To open a Roth IRA, download Roth IRA forms | Download a Roth Conversion Request Form
Consult with your tax professional to ensure the plan you choose is suitable for you or your business profile and for a complete understanding of how an investment may affect your tax liability.
A $50.00 closing fee applies to closed or outgoing IRA transfers.
Investrade Discount Securities, a division of Regal Securities, Inc., makes neither a recommendation as to the appropriateness of investing in any specific investment product nor is it providing any specific investment advice for any particular investor. Due to rapidly changing market conditions, and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions. Clients should take special care in understanding all of the risks involved prior to investing.
Option rates apply to each side of spread orders. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades.
Additional fees may apply to orders greater than 2,000 shares directed to the NYSE. Foreign stock orders must be placed with a broker; there is no additional broker assistance charge. Foreign stock orders are $39.00.
Options involve risk and are not suitable for all investors. Certain requirements must be met to trade options through Investrade. On-line trading has inherent risks due to delay or loss of online services, system performance, market conditions, erroneous or unavailable market data. Investors should understand these and additional risks before trading. Before considering any option transaction, please read Characteristics and Risks of Standardized Options provided by the Options Clearing Corporation (OCC), available in Adobe Acrobat PDF format. A current copy may also be obtained by calling Investrade at 1-800-498-7120 or by mailing your request to Investrade Discount Securities, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Because of the importance of tax considerations, Investrade recommends consulting your tax advisor before contemplating any options transaction. Supporting documentation for any claims, comparison, recommendations, statistics, or other technical data, will be supplied upon request.