IRA Contributions & Distributions
Can I contribute to an IRA if I have other retirement plans?
You can contribute to an IRA regardless of whether or not you have an employer-sponsored retirement plan and it doesn't change how much you can contribute. However, it could affect your eligibility for deducting your contributions to a Traditional IRA on your tax return.
Remember, the total you can contribute to an IRA applies to all IRA Plans you may have at ING DIRECT and at any other institutions. Make sure you consult your tax advisor.
What's considered eligible money?
Before contributing to an IRA, you must first determine if you are eligible based on your compensation.
Eligible compensation includes:
- Wages, salaries, tips, commissions received as a percentage of sales
- Taxable alimony and separate maintenance payment you receive under a decree of divorce or separate maintenance
- If you are a sole proprietor or a partner, your compensation is based on your net earnings from your trade or business, minus contributions to any employer-sponsored retirement plan you may have and any deduction allowed for 50% of your self-employment taxes
Not considered eligible compensation:
- Amounts received as interest, dividends, pension, annuity, earnings and profits from property investments
- Any amounts you exclude from your income
Tip: If you don't have eligible compensation, and you are married, you may be able to use your spouse's compensation as a basis for making a contribution to your own IRA, as long as you file a joint tax return. This is sometimes known as a "spousal IRA," Please check with a tax advisor for more information.
What are the IRA contribution limits?
View the IRA contribution limits for the current year. This limit applies to all IRAs you have, whether it's at ING DIRECT or elsewhere.
If your earned income is less than the contribution limit, then you're only able to contribute up to the amount you earned for the year.
If you're 50 or older by the end of the year for which the contribution is made, you can add up to an additional $1,000 per year. This additional amount is referred to as a "catch-up contribution".
Can I contribute to both a Traditional and Roth IRA?
Yes, but the total contributions you make to all of your Traditional and Roth IRAs (whether at ING DIRECT or other institutions) cannot exceed your compensation or the annual contribution limit, whichever is less.
What are IRA 'catch-up' contributions?
If you're 50 or older by the end of the year for which the contribution is made, you can add up to an additional $1,000 per year.
Can I transfer funds from a retirement plan at another institution into an ING DIRECT IRA?
Yes, after opening your ING DIRECT IRA, you may transfer or roll over retirement money from other qualified retirement plans and institutions.
Learn how to roll over an existing IRA into ING DIRECT.
What is the contribution deadline each year?
A contribution must be made by the IRS tax-filing due date, generally April 15 (not including extensions). Check with your tax advisor to see when the IRS tax-filing due date is.
What happens to my account in the event of my death?
The proceeds of your IRA Plan will be paid to your designated beneficiaries so it's important to designate beneficiary(ies) when opening an IRA Plan at ING DIRECT. If you do not designate any beneficiaries, the proceeds will go to your estate.
Am I ever required to take funds from my IRA?
With Traditional IRAs, you're required to take minimum withdrawals or distributions starting at age 70½ or you'll be penalized by the IRS. With Roth IRAs, you're not required to take mandatory distributions at a certain age, so your earnings can continue to grow until you need them.
How do I open an IRA Plan?
At this time, the Traditional and Roth IRA Plans are only available to existing ING DIRECT Customers and can only be opened online.
To open a Traditional or Roth IRA Plan:
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on 'Open an Account'
- In the ‘Retirement’ section, select the 'Open Now' link next to IRAs
- 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 do I know when my Traditional or Roth IRA Plan is open?
The final page of the application will confirm your account number as well as the type of plan that you have opened. You can view your plan by selecting the 'My Accounts' tab while signed in. You'll also receive an email confirming your new account.
How do I open an IRA Savings Account?
At this time the Traditional and Roth IRA Plans are only available to existing ING DIRECT Customers and can only be opened online.
To open a Traditional or Roth IRA Plan:
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on 'Open an Account'
- In the ‘Retirement’ section, select the 'Open Now' link next to IRAs
- 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 do I know when my IRA Savings account is open?
The final page of the application will confirm your account number as well as the type of Plan that you have opened and your Plan number. You can view your plan by selecting the 'My Accounts' tab while signed in. You'll also receive an email confirming your new account.
How do I open an IRA CD?
At this time, Traditional and Roth IRA CDs are only available to existing ING DIRECT Customers.
In order to open an IRA CD, you must first open an IRA Plan, which includes the IRA Savings Account you'll use to make contributions and withdrawals within your IRA Plan.
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on 'Open an Account'
- In the ‘Retirement’ section, select the 'Open Now' link next to IRAs
- Choose the type of plan, Traditional or Roth, under the 'FDIC-Insured Savings' section
While opening your IRA plan, make sure you click 'Contribute Now' on the Funding page. Once your plan is open, click on the 'Open an IRA CD' link on the confirmation page to open an IRA CD using the funds that you contribute to your ING DIRECT IRA.
If you already have an ING DIRECT IRA plan:
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on your IRA plan
- Click the 'Open an IRA CD' icon to open your IRA CD
How do I know when my IRA CD is open?
The final page of the CD opening process will confirm your account number as well as the amount and term of the CD that you have opened. You can view your plan by selecting the 'My Accounts' tab while signed in. You'll also receive a letter confirming your new IRA CD.
Can I open an IRA CD from my externally linked checking account?
No, all contributions must be initially deposited into your IRA Savings Account. From there, you'll be able to open an IRA CD.
How do I take a distribution?
To take a distribution (withdrawal) from your Traditional or Roth IRA Plan:
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on your IRA Plan on the ‘My Accounts’ page
- Click on the ‘Take an IRA Distribution’ icon
- Review the ’Amount Available for Distribution’ section to see how much you can withdraw
- Select the account you want to send the distribution to
- Enter how much you want to take the distribution for
- Select a withholding option from the drop-down menu (always ask your tax advisor whether withholding taxes is the right option for you)
- Click ‘Continue,’ review the information and click ‘Submit.’
What is a Required Minimum Distribution (RMD)?
Customers who have a Traditional IRA must take Required Minimum Distributions (RMD) every year starting at the age of 70 ½. We ask that you consult your tax advisor or visit www.irs.gov to learn how RMDs could affect your taxes. If you’re required to take a distribution, follow these directions to learn how much you need to withdraw:
- Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
- Click on your IRA Plan on the ‘My Accounts’ page
- Review the 'Required Minimum Distribution’ section to locate the amount
Learn how to take a distribution.