Investing and Retirement Help

An Individual Retirement Account (IRA) is designed to help you save for retirement and take advantage of tax benefits. There are two main types of IRAs: Traditional and Roth IRAs.

The primary difference between a Traditional IRA and Roth IRA is the type of tax benefit each offers. Roth IRAs offer tax-free growth potential. Investment earnings are distributed tax-free, if a five-year waiting period has been met and you are at least age 59½, or you are disabled, or using the qualified first-time homebuyer exception ($10,000 lifetime maximum), or the payment is made to your beneficiary after your death. Since contributions to a Roth IRA are made with after-tax dollars, there is no tax deduction regardless of income. Traditional IRAs offer 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 your income, your contribution may be tax deductible. Deferring taxes allows for a potentially greater accumulation of wealth. For more information about these IRAs, including details about eligibility, visit the Traditional vs. Roth section of our IRA Center.

Rolling over your QRP to an IRA takes just three steps. Learn how to roll over.

The first step in opening an IRA is to select the option that fits your individual investment style. It’s important to know that application instructions vary based on the type of investing style you choose. For additional details on brokerage options, you can also call us at 1-877-493-4727.

Your beneficiary designations generally determine who will inherit your IRA and supersede instructions in your will or trust. To update your beneficiaries, have your account number available and call us at the phone number listed on your IRA statement (to access your statement simply sign on to Wells Fargo Online and select Statements and Documents in the More menu).