What are the benefits of opening a Traditional IRA?

The most often mentioned benefit of a Traditional IRA is tax-deferral: your contributions and the earnings on those contributions grow tax-deferred over the life of the account. Also, depending on your income you may be able to take a tax deduction for the contribution.

Do I need to deposit money immediately to open an IRA account?

No. Your BUYandHOLD IRA account will be open as soon as you complete your application. But you must keep in mind that the April 15th deadline for IRAs is for opening and funding your account.

Can anyone open a Traditional IRA?

No. To open a Traditional IRA, you must be under 70 ? and have earned income.

What is "earned income"?

Generally, this is income that you have worked for, such as salary and wages. It does not include dividends and interest, or monies you receive from pensions.

How much can I contribute to my Traditional IRA?

With the passage of the Economic Growth & Tax Relief Reconciliation Act of 2001, the amount that you can contribute to your Traditional IRA has changed.

You can now contribute $5,000 or 100% of earned income per year- whichever is less.

If you are age 50 or older, you can contribute an additional $1,000 as a catch-up contribution.

To find out how much of the contribution is tax deductible, please click here.

Can I make a contribution in either securities or with cash?

No. Contributions to Traditional IRAs can only be made in cash.

How can I fund my Traditional IRA?

At BUYandHOLD we offer several ways to fund you IRA:

• Set up BUYandHOLD Instant Deposit to have your contribution moved from your savings or checking account. Click here to set up BUYandHOLD Instant Deposit.
• Send a check made payable to BUYandHOLD. You should also include a Check Deposit Slip and follow the mailing instructions found on the slip.
• You can also transfer assets from an IRA you hold at another financial services firm. This will be considered a transfer of existing assets, and as such will not be reported as a contribution to your IRA. To transfer all or part of the existing assets you hold in an IRA at another financial services firm, go to the Maintenance area in the "View Your Account" section of our site and click on Printable Forms. Choose the Brokerage Account Transfer Form, or click here, then print the form, complete it and return it to BUYandHOLD as per the instructions on the form.

What is the latest date I can open and deposit a contribution to a Traditional IRA?

The deadline is April 15th for the IRA to count for that tax year, and no extensions are allowed, even if you have an extension to file your taxes. Don't forget that the April 15th deadline for IRAs is for opening and funding an account.