2008 IRS tax deadline 00 days.
Frequently asked IRA questions
An Individual Retirement Account (IRA) is one of the best ways to save for retirement. Your IRA contributions can grow on either a federally tax-free or tax-deferred basis, which lets earnings in the account compound over time. Money in tax-smart accounts like IRAs and 401(k)s can compound faster than money in taxable accounts.
What’s the benefit of starting early?
When you start early, even small IRA contributions can have a big impact on your future due to the power of compounded growth. Money in your IRA is not taxed, which means your savings can grow much faster than in a taxable account. So by investing early in an IRA, you can earn more over time than you could in a regular savings account. While it’s never too late to start, the later it gets, the more you may have to put away to reach your goal.
If I have a 401(k), should I still open an IRA?
To save as much as possible for your retirement, it’s best to max out both your 401(k) and IRA. Can’t afford to fully fund both? Consider contributing to your 401(k) at least up to the amount your employer matches. Then contribute to either a Traditional IRA, which typically offers more investment choices than a 401(k), or a Roth IRA, which grows tax-free. For more information, read about how to maximize your retirement contributions.
What are the 2008 and 2009 IRA contribution limits?
- Under age 50: $5,000
- 50 or older: $6,000
The minimum to open an IRA at Schwab is $1,000—or $0 if you set up an automatic monthly transfer of at least $100. And there are no account service fees or minimum balance fees.
What are my IRA investment choices?
You can select from a wide range of mutual funds, stocks, bonds, CDs, and more. Or, to choose the right investments for your IRA quickly and easily, consider Schwab Target Funds—our already-diversified, all-in-one retirement solution.
What are retirement target date funds?
Retirement target date funds (or just target funds) are actively managed mutual funds that adjust over time as you approach retirement. They’re one of the easiest ways to invest your IRA. With smart and simple Schwab Target Funds, just pick the fund closest to your retirement date—whether 2010, 2020, 2030, or 2040—and let us take care of the rest. Your fund will automatically reduce risk as your retirement date nears. To invest in a Schwab Target Fund for your IRA, just choose the one closest to your retirement date on your IRA application.
Learn more about Target Funds.
What do I need to complete my application online?
- Social Security number
- Driver’s license number
- Employer’s name and address (if applicable)
- Beneficiary’s Social Security number and contact information
- Statement from your bank or other financial institution if you’re transferring assets or cash to fund your new Schwab IRA online (recommended)
Roth or Traditional
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.
Once your IRA application is submitted, funding must be completed and the application must be approved before any trading can begin.
©2009 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.
CSA 06544 (2008-5982) ELC40531LP-03 (01/09)
* Other fees apply. Please refer to the Charles Schwab Pricing Guide for Individual Investors (“the Guide”) and any amendments to the Guide for comprehensive details on fees.
1 Source: Schwab Center for Financial Research. In this chart, each person invested $5,000 per year, and had an 8% annual return composed of 2% qualified income dividends and 6% long-term capital gains. We assume all dividends will be qualified and, along with long-term capital gains, taxed when realized at 15% through 2010 (first two years). After that, the tax rules revert to pre-2003 tax law, where dividends are assumed to be taxed at the maximum ordinary rate and long-term capital gains will be taxed when realized at 18% (rate for assets held over five years). The taxable account invests the $5,000 after being taxed at the highest marginal tax rate, realizes capital gains every five years and dividends annually, with net proceeds reinvested. The amount shown for the Traditional IRA is the total accumulation before any withdrawals and assumes that all contributions are fully tax-deductible. Taxes must be paid upon withdrawal. This represents a hypothetical investment and is for illustrative purposes only; the actual rate of return will fluctuate with market conditions, and is subject to any changes in tax law.
Once your IRA application is submitted, funding must be completed and the application must be approved before any trading can begin.
©2009 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.
CSA 06544 (2008-5982) ELC40531LP-03 (01/09)
Helpful Tools
Estimate your savings needs for retirement with our Retirement Savings Calculator.
Why Choose Schwab
-
Easy To Open
Open your account online in just 15 minutes. -
Easy To Afford
Low $1,000 minimum;
no account service fees.* -
Easy To Get Help
Call 800-548-5576. -
Easy To Contribute
to an existing Schwab IRA (client login required).
