age limit to open an ira account
Maybe the choices in your employer's retirement plan are lousy. Maybe you need another tax break or want to reduce your tax burden in retirement. Maybe you've maxed out your 401(k) and still want or need to save more. If so, open an IRA. 1. A distribution from a Roth IRA is tax-free and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first time home purchase. 2. You must be at least 18 to open an IRA at Fidelity. 3. $7.95 commission applies to online U.S. equity trades in a Fidelity account with a minimum opening balance of $2,500 for Fidelity Brokerage Services LLC retail clients. Traditional IRAs haven’t been attractive investment vehicles for minors, in part because young children seldom have enough income to benefit from the deduction. A Roth IRA for a child can be very attractive, however. There’s no minimum age to set up a Roth IRA, and many IRA providers will accept accounts for minors. In most cases the only issue is whether the child has taxable compensation income. Money in your child’s IRA belongs to the child. There’s no way to restrict the child from withdrawing it and using it in any way he or she chooses, at least after the child reaches the age of majority. Bear this in mind before you pour many thousands of dollars into an IRA for your child. 1 Get started with as little as $1,000. *. 2  Move money directly from your bank to your new Vanguard IRA ® electronically. 3  You'll just need your bank account and routing numbers (found on your bank checks). For those with income above the limits. If you are above these limits and you have assets in a Traditional IRA or an old workplace savings plan, such as a 401(k), you may still be able to take advantage of the benefits of a Roth IRA by converting these assets. Open your IRA online quickly & easily. 1  Get started with as little as $1,000. *. 2  Move money directly from your bank to your new Vanguard IRA ® electronically. 3  You'll just need your bank account and routing numbers (found on your bank checks). Anyone who's younger than 70½ and has earned income can open an individual retirement account. While the age limit does apply to traditional IRAs, it does not apply to Roths. Even your kids can open an IRA as long as they're earning money. And while starting an IRA isn't child's play -- you'll want to compare fees, expenses and investment performance -- it isn't that tough, either. You have three main options when it comes to opening an IRA: a bank, a brokerage or mutual fund company. And you can invest in any kind of security -- stocks, bonds, mutual funds, etc. A bank might work well if you can't decide where to put your money. It also can be a good choice if you don't have much to invest. You often can open an account for as little as $100. Most let you invest in CDs or money market accounts, sometimes without an annual fee. *There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Fund investments held in your account may be subject to management, low balance and short term trading fees, as described in the offering materials.
18