- A retirement savings plan that allows an individual to contribute earnings until they are withdrawn.
- Contributions are subject to annual limits depending on the age of the account owner and may or may not be deductible depending on the individual’s circumstances.
- Earnings accumulate tax deferred until distributed to you at which time the earnings are subject to tax upon withdrawal.
- A spouse may contribute to a separate account subject to the same limits.
- Withdrawals made prior to age 59½ are subject to a 10% penalty unless certain special circumstances apply.
- Distributions must begin by the account owner’s required beginning date (RBD), which is April 1 following the year that the account owner reaches age 70½.
- Once the account owner reaches age 70½, he or she must withdraw at least a minimum amount called an annual Required Minimum Distribution (RMD).
- If an account owner fails to withdraw the full amount of the RMD annually, or fails to withdraw the RMD, there is a 50% tax penalty that may be imposed by the IRS on the amount not withdrawn.
US citizens living anywhere in the world and US resident aliens may open cash or margin Individual Retirement Accounts (IRAs).
IRA margin accounts allow trading so the account can be fully invested as well as the ability to trade multiple currencies and multiple currency products, but are subject to the following limitations:
- No cash borrowing (i.e. cannot have a debit balance or short stocks).
- IRA accounts may be opened in any base currency, but when trading in a non-base currency product, a currency trade must be executed first as you cannot borrow currencies.
- Withdrawals are permitted only in USD.*
- No stock or option cross-margining.
- No currency borrowing.
- Futures trading in an IRA margin account is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed three times the overnight futures margin requirement imposed in a non-IRA margin account.