IRAs FAQs
FAQs
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In an IRA, you can trade stocks, ETFs, mutual funds, and fixed income products such as bonds or CDs. Because industry regulations prohibit IRA accounts from having margin, short selling and selling naked options aren't allowed.
You may also be able to make up to Level 3 option trades in your IRA. Depending on your approval level, you may be able to use strategies such as: covered calls, cash-secured puts, long puts and calls, spreads, and other multi-leg strategies. Review our Option Account Agreement and Application (PDF) to learn more about our requirements for trading options at Ally Invest.
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For individual or joint accounts:
To change or add a beneficiary to a non-IRA Ally Invest account, complete the Beneficiary Form (PDF), have it notarized, and mail it to:
Ally Invest
PO Box 30248
Charlotte, NC 28230For IRA accounts: While opening an Ally Invest IRA account online, you'll be asked to identify at least one primary beneficiary for your account. To update or change your beneficiary, complete the IRA Beneficiary Designation (PDF). Be sure to sign it, then upload it in the forms section after logging in to your account, or fax it to 1-866-699-0563.
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We don't charge an annual fee for maintaining an Ally Invest IRA account. There’s a $25 fee for terminating an Ally Invest IRA account, which is charged when all funds are removed from the IRA. If you make a full transfer out of your Ally Invest IRA account, there's both a $50 transfer fee as well as the previously mentioned $25 termination fee. Partial account transfers have a $50 transfer fee.
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An IRA Rollover is the movement of assets from a qualified retirement plan, like a 401(k) plan or 403(b) plan, to an IRA such as an Ally Bank IRA or Ally Invest IRA. Rollovers could be subject to tax consequences. Consult your tax advisor regarding frequency of rolling over funds.
An IRA Transfer moves funds directly from the trustee or custodian at another institution to the institution of your choice. For example, from a traditional IRA at your other bank into your Ally Traditional IRA.
Learn more about the different ways to move your retirement money around and about converting one type of IRA plan to another, such as traditional to Roth. You can also visit IRS.gov for more information on rollovers, transfers, and conversions.
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The IRA contribution limit for 2023 is $6,500 ($7,500 if you're age 50 or older at the end of the applicable calendar year). The IRA contribution limit increased for 2024 to $7,000 ($8,000 if you're age 50 or older at the end of the applicable calendar year). This amount is the total maximum for all your IRAs combined, not each one. There may be limitations to the amount you can contribute, based on your filing status and income. Contact your tax professional for questions about your contribution strategy.
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If your IRA contributions exceed yearly contribution limits, remove the excess amount before the tax filing deadline to avoid a possible 6% penalty.
The fastest way to withdraw money from an IRA account is to log in to your account, select Transfers, then Invest Transfers, fill out the provided form and upload it online.
We strongly suggest you consult with a licensed tax professional to determine how to correct any excess contributions before submitting your request.
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Traditional: There’s no income cap to contribute.
Roth: For 2023, single filers who made less than $138,000 or joint filers who made less than $218,000 can make full contributions. Single filers who made between $138,000 and $153,000 or joint filers who made between $218,000 and $228,000 can make contributions at a reduced amount.
For 2024, single filers who make less than $161,000 or joint filers who make less than $240,000 can make full contributions. Single filers who make between $146,000 and $161,000 or joint filers who make between $230,000 and $240,000 can make contributions at a reduced amount.
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Traditional IRA: An Individual Retirement Account (IRA) allows investors to deposit income, up to a specific annual maximum, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed). Contributions to a traditional IRA may be tax deductible depending on the taxpayer's income, tax-filing status, and other factors. Learn more about traditional IRAs
Roth IRA: A Roth IRA is a retirement account in which contributions are not tax deductible (contributions are made with post-tax dollars). Roth IRAs do allow for tax exempt distributions. Learn more about Roth IRAs
Rollover IRA: A rollover IRA is a retirement account designed to facilitate the movement of holdings from a corporate retirement plan, such as a 401(k) plan. The rollover IRA is interchangeable with a traditional IRA. Contributions may be tax deductible depending on the client's income level. Learn more about rollover IRAs
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You can use any of our Ally Invest accounts to fund your IRA:
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Self-Directed
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Robo Portfolios
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Personal Advice
If you're closer to retirement, you may want to consider one of our Ally Bank IRA options instead. They're FDIC-insured and better suited for the shorter term with more consistent returns.
We offer the following accounts:
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IRA High Yield CD
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IRA Raise Your Rate CD
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IRA Savings Account
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The easiest way to fund an IRA is through a bank (ACH) transfer. Once you open an account, you can link your bank account to your Ally Invest account by going to Investment Transfers and selecting Manage Other Accounts. After you link your bank account, you can make contributions any time you want or set up an automatically recurring contribution.
You can also fund your IRA through a bank wire or by sending us a check. When funding by these methods, be sure to indicate the contribution year on your wire or check so we can properly label your contribution.
Lastly, you can contribute to an IRA by performing a transfer of cash from an existing individual or joint Ally Invest account. If performing a journal from a joint account to an IRA Account, the original IRA Contribution Form will need to be notarized and mailed to Ally Invest. IRA Contribution Form