Online Investing Account Types

The information below is meant to help guide your account opening decision. However, there are many times where you will need to contact a tax or investment professional to determine which account is best for you. Visit www.irs.gov and look over the unique characteristics between the different investment accounts available. If you need help, give us a call at 877.851.8847.

Individual Account

• This is a standard investment account — one you can use to accomplish just about any goal for any time frame (within reason, of course — it’s very unlikely we’d be able to help you save a million dollars in a year!).
• You may pay capital gains tax based on any capital gains realized and your income tax bracket.
• There are no penalties for withdrawals, but there may be taxes on the account appreciation or the capital gain.

Traditional IRA (Individual Retirement Account)

• A traditional IRA is primarily used to save for retirement.
• There are limits on how much can be invested each year based on:
  • Your earned income, what other IRAs you’re contributing to, and your age.
  • Visit www.irs.gov to see the limitations that may be applied to your situation.
• If you’re close to 73, make sure you talk to an advisor about taking your Required Minimum Distribution (RMD) — this is currently required the year you turn 73 and every year after, and is set to increase to 75 starting in 2033.
• If you have a 401(k) from a previous employer, it will likely roll over into a traditional IRA, although your employer may offer a Roth 401(k), which would roll over to a Roth IRA.
• If you’re under age 59 ½ and need to make a withdrawal, there may be an IRS penalty and taxation depending on your circumstances. Visit www.irs.gov for more information.

Roth IRA (Individual Retirement Account)

• A Roth IRA is primarily used to save for retirement.
• There are limits on how much can be invested each year based on:
  • Your earned income and what other IRAs you’re contributing to.
  • Visit www.irs.gov to see the limitations that may be applied to your situation.
• Visit our IRA and Rollover page to see your contribution eligibility, withdrawal taxation, and other benefits of Roth IRA accounts.
• Certain IRS withdrawal penalties and other restrictions apply to Roth IRAs — please refer to www.irs.gov for more information.
• If you have a Roth 401(k) or similar employer plan that is funded with after-tax dollars, you will likely be eligible to roll that plan into a Roth IRA.

I have another retirement or investment account that you haven’t mentioned yet. What do I do?

Most account types are supported by our platform. Send us an email at investonline@ubt.com or call us at 877.851.8847 and we will be happy to help.