Individual Retirement Accounts (IRAs)

Open a tax-advantaged account that helps you save more for retirement.

Wonderful growth potential.

Even if you already participate in an employer-sponsored-retirement plan like a 401(k), an IRA can help supplement these savings. IRAs offer the potential for growth in a tax-advantaged account. Over time, that can make a significant difference in your retirement savings.

Ways to save

Choose from a variety of investment options, each with their own advantages and flexibilities.

Traditional IRA

Take advantage of tax-deferred growth potential. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement. Additionally, depending on whether you’re covered by a retirement plan with your employer and your income, your contribution may be tax deductible.1

Roth IRA

Take advantage of tax-free growth potential. Earnings are distributed tax-free in retirement if a five-year waiting period has been met and you are at least age 59½, or as a result of your death, disability, or using the first time homebuyer exception. Since contributions to a Roth IRA are made with after-tax dollars, there is no tax deduction regardless of income.

Simple & SEP IRAs

Both employees and employers can contribute to an IRA set up for employees. These are often offered by small businesses as a retirement plan for their workers—ideal for small businesses with a few employees. A SEP IRA is a Traditional IRA that holds employer contributions under the SEP plan.2

IRA FAQs

Ready to get started?

  • Schedule a call.
  • We’ll make a smart, confident retirement plan together.
  • Start funding your IRA, enjoying deductions wherever possible.
  • Retire with confidence.
  1. Traditional IRA distributions are generally taxed as ordinary income. Qualified Roth IRA distributions are federally tax-free provided a Roth account has been open for more than five years and the owner has reached age 59-1/2 or meets other requirements. Qualified Roth IRA distributions are not subject to state and local taxation in most states. Both may be subject to a 10% IRS tax penalty if distributions are taken prior to age 59-1/2.
  2. Withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59-1/2. For SIMPLE IRAs, the federal penalty increases to 25% if a distribution is taken prior to two years from the first deposit made into a participant's account if under age 59-1/2. 
  3. Please keep in mind that rolling over assets to an IRA is just one of multiple options for your retirement plan. Each of the following options is different and may have distinct advantages and disadvantages.

    1. Roll assets to an IRA
    2. Leave assets in your former employer's plan, if plan allows
    3. Move assets to your new/existing employer's plan, if plan allows
    4. Cash out or take a lump sum distribution

    When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty free withdrawals are available, treatment of employer stock, when required minimum distributions begin and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.

    Wells Fargo Advisors Financial Network does not provide legal or tax advice.