IRA Basics - The Basics

What is an IRA?

An IRA (Individual Retirement Arrangement) is a special tax-advantaged plan created to help working people save for retirement.

What's the difference between Traditional and Roth?

When deciding between a Traditional and Roth IRA, you may want to ask yourself: Do I want to save on taxes now with a Traditional IRA or when I retire with a Roth IRA?

Here are some key differences between a Traditional and Roth IRA Plan:

As always, consult your tax advisor for additional information. Learn more about the difference between Traditional and Roth IRAs

Do I have to be an existing ING DIRECT Customer to open a Traditional or Roth IRA Plan?

Yes, at this time the Traditional and Roth IRA Plans are only available to existing ING DIRECT Customers.

How do I open an IRA Plan?

To open a Traditional or Roth IRA Plan:

1. Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
2. Click on 'Open an Account'
3. In the ‘Retirement’ section, select the 'Open Now' link next to IRAs
4. Choose the type of plan, Traditional or Roth, under the 'FDIC-Insured Savings' section

Once your IRA Plan is open, you'll be able to open IRA CDs or transfer funds to other ING DIRECT IRA products using this account.

How many IRA Plans can I have at ING DIRECT?

You can have one Traditional and one Roth IRA Plan. Under each IRA Plan, we'll automatically open an IRA Savings Account that you'll use to make contributions and withdrawals. You can open as many IRA CDs as you'd like under each Plan; however, you can only have one IRA Savings account per Plan.

What is a beneficiary?

A beneficiary is the person, charity, estate or trust that will take ownership of the account and the money in it when the owner passes away. When opening an IRA, it's important to designate a beneficiary or beneficiaries and keep the following in mind.

• The person you choose to be your beneficiary must be a US citizen or resident alien.
• You can name primary and contingent beneficiaries and divide the assets among them. (You can also choose to split the money among them however you'd like as long as it totals 100% for each beneficiary type.)
  • Primary beneficiary – person(s) or entity(ies) who receives the account's assets after the owner passes.
  • Contingent beneficiary – if all the primary beneficiary(ies) pass away before the division of assets, then the assets will go to them.
• You have the option to change your beneficiaries on your IRA at any time.

Note: If an IRA owner is married, some states have requirements related to making the owner's spouse a primary beneficiary of the IRA. Please check with a tax advisor for more information.

How many beneficiaries can I have on my IRA plan?

During the online account opening process, you can designate a maximum of six beneficiaries; these can be either Primary or Contingent Beneficiaries. If you'd like to designate more than six, simply print, complete and return as many Beneficiary Forms as needed.

How can I add or change a beneficiary?

To add or change a beneficiary on your IRA plan:

• Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
• Click on your IRA Plan on the ‘Account Summary’ page
• Click on the ‘Plan Maintenance & Forms’ icon
• Under the ’Plan Maintenance’ section, select the ‘Beneficiaries’ link
• On the ‘View or Update Beneficiaries’ page, you can add or delete an existing beneficiary

Are there minimums or fees?

There are no minimums or fees for opening or maintaining an ING DIRECT Traditional or Roth IRA Plan.

Are my IRA Plan deposits FDIC insured?

IRA deposits, including the IRA Savings account and all IRA CDs combined within each Traditional and Roth IRA Plan, are FDIC insured up to $250,000 per plan. This is in addition to FDIC insurance for non-IRA deposit accounts. You can learn more at www.fdic.gov.

How is interest calculated on the IRA Savings Account and CD?

Interest on the IRA Savings Account and CD is accrued daily and compounded monthly.

Traditional IRA Custodial Agreement
Roth IRA Custodial Agreement
IRA Account Terms & Conditions