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A WellsTrade account opened online comes with Brokerage Cash Services, which gives you convenient money-movement options such as online money transfers between your Wells Fargo accounts and mobile check deposits using your smartphone. You can also visit the tellers at Wells Fargo branches and make contributions, transfers, and rollover deposits, which are processed through an associated limited-purpose Wells Fargo Bank account in your name.
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Traditional IRA
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Roth IRA
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Contributions. Annual contributions to a Traditional IRA may be tax-deductible, and potential earnings grow tax-deferred until distributed. Rollovers*. Traditional IRAs accept eligible rollover contributions of before and after-tax assets from qualified employer sponsored retirement plans (QRPs) such as 401(k), 403(b), or governmental 457(b). Transfers. Traditional IRAs accept transfers from other Traditional, SEP, and (after two years from first deposit) SIMPLE IRAs.
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Contributions. Annual contributions to a Roth IRA are not tax-deductible, but potential earnings grow tax-deferred and may be tax-free when distributed. Rollovers*. Roth IRAs accept eligible rollover conversions from QRPs. The rollover of after-tax assets would not be a taxable event. Any rollover of before tax amounts will be included in your gross income for the year. Designated QRP Roth account assets can also be rolled to a Roth IRA. Transfers. Roth IRAs accept transfers from other Roth IRAs. Conversions. A Roth IRA conversion occurs when you take savings from a Traditional, SEP or SIMPLE IRA or QRP and move them to a Roth IRA. At the time of conversion you will pay the appropriate taxes due on any before-tax amounts converted, you will not owe tax on any after-tax amount; the IRS 10% additional tax for early or pre-59 1/2 distributions (10% additional tax) does not apply. The benefits of tax-free income in retirement may justify the conversion. Be sure to talk to your tax advisor to discuss your specific situation before you decide to convert. Remember, once you convert, you cannot recharacterize, or undo the conversion.
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*Please keep in mind that rolling over your qualified employer-sponsored retirement plan (QRP) to an IRA is just one option. Each option has advantages and disadvantages and the one that is best depends on your individual circumstances. You should consider features such as fees and expenses, services offered, investment options, when distributions are no longer subject to the 10% additional tax, 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 a QRP. We recommend you consult with your current plan administrator before making any decisions regarding your retirement assets.
