Are you ready for tax season?

Open an IRA before April 15 for potential tax savings

U.S. Bancorp Investments makes it easy for you to open and fund an IRA. Your advantages may vary depending on the type of IRA.

For example, if you open a traditional IRA, potential benefits include:

  • Contributions that qualify for pre-tax deductions
  • Contributions by April 15 allows deductions on your 2018 taxes
  • Invest your IRA, and you won’t pay taxes on any gains as long as the money stays in the IRA

Open an IRA with Automated Investor and we’ll do the hard part for you, by investing your IRA contribution and keeping your money working for you.

Questions? Call us 24/7 at 866.758.8655 or request a call.

IRA investing made easy

Automated Investor

Open an IRA through Automated Investor and take the time and guesswork out of investing for retirement.

  • We’ll manage your money for you
  • Stay on track with automatic monitoring and rebalancing
  • Speak with financial professionals whenever you need to
  • Low-fees* and get started with a $5,000 investment

* 0.5% annual fee, billed quarterly at 0.125%

Learn about Automated Investor

Self-directed brokerage

Something else to consider for a more hands-on investing approach for your IRA is a self-directed brokerage account. This lets you trade stocks bonds, mutual funds, ETFs and more, on your own.

Learn about Self-directed brokerage

Traditional IRA vs Roth IRA

The two most common types of IRAs are traditional and Roth. Here’s a brief comparison1:

Compare Traditional IRA and Roth IRA

Features

Traditional IRA

Roth IRA

Eligibility

  • Under age 70 ½
  • Any age. Income thresholds apply

Contribution limits

  • Under age 50 $5,500/year
  • Over age 50 $6,500/year
  • Under age 50 $5,500/year
  • Over age 50 $6,500/year

Tax benefits

  • Tax-deductible contributions
  • Tax-deferred earnings growth
  • Contributions not tax-deductible
  • Tax-free earnings growth
  • Tax-free withdrawals

Distributions and withdrawals

  • Required minimum distributions (RMDs) start at age 70 ½ ; distributions are taxed
  • Penalty for withdrawals before age 59 ½
  • No RMDs
  • Penalty for withdrawals before age 59 ½

IRA benefits

 

Potential benefits of investing your IRA

Tax-deferred growth – For traditional IRAs, any income your IRA investments earn will not be taxed until you start taking distributions from the account at age 70 ½. This is a popular strategy for those who expect to be in a lower tax bracket upon retirement.

Tax-free growth – With Roth IRAs, you contribute taxable income to the IRA, but any investment growth accumulates tax-free and is not taxed upon withdrawal. This is a strategy that allows younger investors to potentially grow their investments over the long-term.

 

The easy way to IRA

  • Automated Investor

    We’ll monitor and rebalance your account
    Access to financial professionals 24/7
    Low-fees and low $5k minimum

  • Self-directed brokerage

    To select and trade IRA investments on your own, consider this type of brokerage account.

Self-employed or small business owner?

Self-employed or small-business owners should consider a Simplified Employee Pension (SEP) IRA, a type of traditional IRA with a higher contribution limit. In 2018, this is up to 25% of compensation ($55,000 maximum).

Find out which IRA is right for you

Please consult with your tax advisor for additional details and for help to decide which type of IRA is best for you.