Open an IRA before April 18, 2023, for potential tax benefits.

An individual retirement account (IRA) is a tax-advantaged investment account designed to help you save toward retirement. IRAs are one of the most effective ways to save and invest for the future. They allow your money to grow on a tax-deferred or tax-free basis, depending on the type of account (see the table below for details).

Types of IRAs

Determining which IRA is best for your unique situation depends on your age, income and financial goals. Contact us for guidance if you’re not sure which IRA might be right for you.

Traditional IRA
Roth IRA
SEP IRA

Traditional IRA

Traditional IRAs are tax-deferred retirement savings accounts.

Roth IRA

Roth IRAs are tax-free retirement savings accounts.

SEP IRA

Simplified employee pension (SEP) IRAs are tax-deferred retirement savings accounts set up by business owners or self-employed individuals for themselves and any employees.

Description

  • No tax on the portion of your income you invest
  • No tax on additional value your investments gain
  • Potential taxes on withdrawals in retirement
  • Funded with income that has been taxed
  • No tax on additional value your investments gain
  • No taxes on withdrawals in retirement
  • A traditional IRA an employer sets up for themselves and employees
  • Earnings grow tax free and are subject to the same rules as traditional IRAs

Eligibility

  • Any age
  • Must have earned income/wages
  • Any age
  • Must have earned income/wages
  • Income thresholds apply
  • Any age. However, the employer can set a minimum age (below age 21)
  • Any size business, including self-employed individuals and independent contractors
  • Certain salary and service requirements can apply

Contribution limits

  • Under age 50: $6,000 per year
  • Over age 50: $7,000 per year
  • Under age 50: $6,000 per year
  • Over age 50: $7,000 per year
  • Up to 25% of compensation
  • $61,000 maximum
  • No catch-up contributions

Distributions and withdrawals

  • Required minimum distributions start at age 72 (distributions are taxed)
  • Penalty for withdrawals before age 59-1/2
  • No required minimum distributions
  • Penalty for withdrawals before age 59-1/2
  • Required minimum distributions start at age 72 (distributions are taxed)
  • Penalty for withdrawals before age 59-1/2

Availability

  • Available through both U.S. Bank and U.S. Bancorp Investments
  • Available through both U.S. Bank and U.S. Bancorp Investments
  • Available through both U.S. Bank and U.S. Bancorp Investments

Already have an IRA with U.S. Bancorp Investments?

How to open an IRA

It’s easy to open and fund an IRA. Whether you prefer investing on your own or want personal investment guidance, we have an option to fit your needs.

Automated Investor

For convenient investing at a low cost, open an IRA through Automated Investor from U.S. Bancorp Investments. This robo-advisor combines our expertise and technology to manage your retirement account.

Self-directed investing

To make investments on your own, open a self-directed brokerage account from U.S. Bancorp Investments. This lets you trade stocks, bonds, mutual funds, ETFs1 and more, on your own.

Financial professional

When you work with a dedicated wealth professional through U.S. Bank or U.S. Bancorp Investments, you’ll have a single point of contact to help you guide your IRA strategy.

Fund your IRA with an existing account.

401(k) and 403(b) rollovers

U.S. Bancorp Investments and U.S. Bank make it easy to roll over2 your employer-sponsored 401(k) or 403(b) account.

IRA transfers

Options for transferring your IRA:

  1. Authorize a transfer. Authorize the transfer of funds from an existing IRA into your new IRA. Some fees may apply.
     

  2. Request a check. Request a distribution check payable to you. Deposit the funds within 60 days to potentially avoid tax and penalties. Your limit is one rollover per 12-month period.

Insights from our experts

Types of IRA accounts

An IRA can be a key element of a retirement plan, but the first step is to determine which type or types of IRA accounts fit your situation.

IRA vs. 401(k): What’s the difference?

If you’re eligible, it’s possible you could contribute to multiple retirement accounts, so it’s helpful to know how they compare.

4 benefits of an IRA

Look beyond your 401(k) account or pension to maximize the power of your retirement savings.

About brokerage and investment advisory services

To learn more about the differences between brokerage and investment advisory services and fees from U.S. Bancorp Investments, please read the Client Relationship Summary and Regulation Best Interest Disclosure.

Disclosures

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  1. Exchange Traded Funds (ETFs) are subject to risks similar to those of stocks, such as market risk. Investing in ETFs may bear indirect fees and expenses charged by ETFs in addition to its direct fees and expenses, as well as indirectly bearing the principal risks of those ETFs. ETFs may trade at a discount to their net asset value and are subject to the market fluctuations of their underlying investments.

  2. A rollover of qualified plan assets into an IRA is not your only option. Before deciding whether to keep an existing plan, or roll assets into an IRA, be sure to consider potential benefits and limitations of all options. These include total fees and expenses, range of investment options available, penalty-free withdrawals, availability of services, protection from creditors, RMD planning, and taxation of employer stock. Discuss rollover options with your tax advisor for tax considerations.

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Investment and insurance products and services including annuities are:
Not a deposit ● Not FDIC insured ● May lose value ● Not bank guaranteed ● Not insured by any federal government agency.

U.S. Wealth Management – U.S. Bank | U.S. Bancorp Investments is the marketing logo for U.S. Bank and its affiliate U.S. Bancorp Investments.

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U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

This information represents the opinion of U.S. Bank and U.S. Bancorp Investments and is designed to be educational and informative. The views are subject to change at any time based on market or other conditions and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide recommendations and/or specific advice concerning retirement accounts or investment planning. It is not intended to be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.

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For U.S. Bank:

Equal Housing Lender. Deposit products are offered by U.S. Bank National Association. Member FDIC. Mortgage, Home Equity and Credit products are offered by U.S. Bank National Association. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.

U.S. Bank does not offer insurance products. Insurance products are available through our affiliate U.S. Bancorp Investments.

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For U.S. Bancorp Investments:

Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.

U.S. Bancorp Investments is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. To understand how brokerage and investment advisory services and fees differ, the Client Relationship Summary and Regulation Best Interest Disclosure are available for you to review.

Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License #0E24641.

Pursuant to the Securities Exchange Act of 1934, U.S. Bancorp Investments must provide clients with certain financial information. The U.S. Bancorp Investments Statement of Financial Condition is available for you to review, print and download.

The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1-800‐289‐9999 or via https://brokercheck.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.

U.S. Bancorp Investments Order Processing Information.

Municipal Securities Education and Protection– U.S. Bancorp Investments is registered with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board (MSRB). An investor brochure that describes the protections that may be provided to you by the MSRB rules and how to file a complaint with an appropriate regulatory authority is available to you on the MSRB website at www.msrb.org.