IRA and 401K

iVillage Member
Registered: 11-17-2007
IRA and 401K
7
Tue, 10-14-2008 - 11:42am

I know this is going to sound like a really silly question but we never had one. How much money does it take to start a Roth IRA or a 401K? Can you do it on a 100.00 and Can you start one in someone else's name.


And where do you go to get one.


Mary Ann

Avatar for londonrose2001
iVillage Member
Registered: 04-09-2003
Tue, 10-14-2008 - 12:36pm

I use Fidelity and I like them -- that's the only company I can speak to but there are other financial services companies out there. I don't think you can buy a 401K on your own; they are operated by employers. That's because you buy them with money BEFORE taxes. An IRA is purchased with after-tax dollars.


At Fidelity, you need a minimum of $2,500 to start an IRA but they will waive that if you sign up for a $200 a month auto-withdrawl from your bank account.


Here's a good FAQ: http://personal.fidelity.com/planning/retirement/content/10_ira_myths.shtml.cvsr?refpr=iprov22


I don't know if you can start them in someone else's name. That would sort of defeat the purpose of getting the tax savings. Maybe there is a way to fund it and name someone else as the beneficiary. You'd have to ask the firm that you use.


When you are considering which company to go through, compare the brokerage fees. There are probably websites that will do that for you.


 

iVillage Member
Registered: 07-22-2008
Tue, 10-14-2008 - 4:00pm

I looked into Fildelity Roth IRA, and got the same answer, $2500 to start. I also called TD Ameritrade, and they will open an account with $2000.

iVillage Member
Registered: 01-23-2007
Tue, 10-14-2008 - 4:20pm

I'm not sure if it's because I already have investments with them or if it would be different for someone just starting; but, I just spoke with my advisor through AIG and she said we could start a Roth IRA with automatic deductions of around $83 that would equal $2000/year. For those over 50, you can invest $6000/year and for those under 50 it's $5000/year.

Dee


iVillage Member
Registered: 08-29-2006
Tue, 10-14-2008 - 5:33pm

Hi Mary Ann,


I use Charles Schwab for my Roth IRA needs.

iVillage Member
Registered: 08-29-2006
Tue, 10-14-2008 - 5:35pm

Hi Again,


Let me know if you need my broker's name and number, if you want someone to handle your stuff with you.

iVillage Member
Registered: 11-17-2007
Tue, 10-14-2008 - 6:55pm
EMAIL ME AT kimbler@bellsouth.net

iVillage Member
Registered: 12-03-2007
Tue, 10-14-2008 - 8:42pm
I am a lurker, but I just thought I'd let you know that you can open a Roth IRA through ING (the online bank) if you already have a savings account with them.

Emily