Open a Traditional or Roth IRA

Rollover

If you have a qualified plan from a previous employer, such as a 401(k), 403(b), 457, Thrift Savings Plan or other qualified plan, or if you have an existing IRA, you can fund your account by rollover.

A rollover involves moving funds from a qualified plan or IRA to a different IRA and typically occurs when the account owner receives a personal distribution of funds and then deposits the funds into their new account.

Important Note: You are limited to one rollover within a 12-month period. This limitation does not apply to direct transfers from one IRA trustee directly to another. You can review more information here.

Transfer

If you have an existing Traditional IRA or Roth IRA at another financial institution, you can request a transfer to your newly established self-directed IRA at Equity Trust.

During a transfer, funds and/or assets from your existing IRA at your current financial institution are moved directly to a compatible account at Equity Trust (Traditional IRA to Traditional IRA or Roth IRA to Roth IRA). Unlike out-of-pocket contributions, there are no limits on the amount you can transfer.

Transfers can be initiated online using the myEQUITY Transfer Wizard or by completing an Account Transfer form. You can request a full or partial transfer of an account. A transfer can move assets from the existing account in-kind, and/or you may request a transfer of cash.

Out of Pocket Contribution

Assuming you qualify, you can contribute to your IRA from your personal checking or savings account, or with a credit card payment.

This funding method is subject to annual maximum contribution limits set by the IRS each year. For 2019 the limits allow for contributions up to $6,000 if under age 50 or $7,000 if 50 or older.

Roth Conversion

Roth IRAs may be funded through a Roth Conversion, which involves converting funds and/or assets from a tax-deferred account (such as a Traditional IRA, SEP IRA, SIMPLE IRA, 401(k) or other tax-deferred plan) to a Roth IRA.

A Roth Conversion is a taxable event: When you convert from a tax-deferred account to an after-tax Roth IRA, the amount of the conversion is added to your ordinary income in the year of the conversion and subject to ordinary income tax. It’s important to consult with a CPA, tax attorney, or other financial professional when considering a Roth Conversion.

Note: This is possible even for individuals who exceed the income limits to be eligible to contribute to a Roth IRA out of pocket.