What is an IRA?

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. It allows your money to grow on a tax-deferred or tax-free basis, depending on the type of account – see the table below.

Types of IRAs

Determining which IRA is best for your unique situation depends on your age, income, and financial goals. Please consult with your tax advisor for additional details and for help to decide which one is right for you.

Need guidance? Contact us

Compare IRAs

Features

Traditional IRA

Roth IRA

Description

Tax-deferred retirement savings account:

  • No tax on the portion of your income you invest
  • No tax on additional value your investments gain
  • Potential taxes on withdrawals in retirement

Tax-free retirement savings account:

  • Funded with income that has been taxed
  • No tax on additional value your investments gain
  • No taxes on withdrawals in retirement

Eligibility

  • Any age
  • Any age
  • Income thresholds apply

Contribution limits

  • Under age 50: $6,000 per year
  • Over age 50: $7,000 per year
  • Already have an IRA with U.S. Bancorp Investments? Contribute now.
  • Under age 50: $6,000 per year
  • Over age 50: $7,000 per year
  • Already have an IRA with U.S. Bancorp Investments? Contribute now.

Distribution and withdrawals

  • Required minimum distributions start at age 72 (distributions are taxed)
  • Penalty for withdrawals before age 59 ½
  • No required minimum distributions
  • Penalty for withdrawals before age 59 ½

Availability

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

3 easy ways to open an IRA

Open a new IRA or roll over your 401(k), 403(b) or another retirement account into our Traditional or Roth IRAs.

Automated Investor

Our robo-advisor creates, monitors and rebalances your investment portfolio as needed so you can stay on track towards your goals. Fees are as low as $1 per month (0.24% annual fee, billed quarterly) with a minimum $5,000 investment.

Available exclusively to current customers through U.S. Bancorp Investments

Not a customer yet? We can help you get started quickly — just call 866-897-3929.

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Learn more about Automated Investor

Self-directed brokerage

For a more hands-on investing approach, open a self-directed brokerage account. This lets you trade stocks, bonds, mutual funds, ETFs – and more – on your own.

Available exclusively through U.S. Bancorp Investments

Open a Traditional IRA

Open a Roth IRA

Financial professional

Work one-on-one with a dedicated wealth professional to understand your whole financial picture and make sure you’re on your way to meet your goals.

Find a financial advisor or banker

Other IRA types

SEP IRA

  • Simplified Employee Pension Plan (SEP) – a tax-deferred retirement plan for anyone who is self-employed, owns a business, employs others or is an independent contractor
  • Contribution limit – up to 25% of compensation for yourself and employees
  • Available through both U.S. Bank and U.S. Bancorp Investments

U.S. Bank Heritage IRA

  • Available exclusively through U.S. Bank
  • Takes advantage of the tax benefits offered by a Traditional or Roth IRA
  • Adds the ability to control payments to beneficiaries after your death

Want to know more about your IRA options?

Contact us

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 rollover1 your employer-sponsored account.

Learn about rollovers

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

 

401(k) Rollovers

How to transfer your previous employer’s retirement account and get a consolidated view of your finances.

How to rollover

IRA vs. 401(k)

What’s the difference?

Read article

4 benefits of an IRA

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

Read article

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.