Account Configuration

Customer Types

Depending on the customer's country of residency, an account will be assigned to IB LLC, IB CAD (Canada), IB UK (Europe), or IB (India) Pvt. Ltd.



Single Customer Types

Customer Type Available Legal Vehicles Available Account Structures Explanation
Individual LLC, CA, UK, India • Individual, Joint, Trust, IRA
• Friends and Family
• Advisor 1
• Advisor Client 1
• Broker Client 1
• SIPP 2
• EmployeeTrack 3
An account owned and utilized by a single trader or investor. A Single account can be linked to multiple Single or IRA accounts.
Joint LLC, CA, UK • Individual, Joint, Trust, IRA
• Friends and Family
• Advisor Client
• Broker Client
• EmployeeTrack 3
An account owned and utilized by two individuals. Depending on the laws of your state of residence, there are three types of joint accounts: Tenants with Rights of Survivorship, Tenancy in Common, and Community Property.
Trust LLC, CA • Individual, Joint, Trust, IRA
• Friends and Family
• Advisor Client
• Broker Client
• EmployeeTrack 3
An account in which the securities are registered in the name of the trust, while a trustee controls the management of the investments.
IRA LLC • Individual, Joint, Trust, IRA
• Friends and Family
• Advisor Client
• Broker Client
• EmployeeTrack 3
Individual Retirement Account. We offer the following types of IRA accounts:

• Traditional
• Traditional Rollover
• Traditional Inherited
• Roth
• Roth Inherited
• Simplified Employee Pension (SEP)
• Simplified Employee Pension (SEP) Inherited

This account is only available for a US resident individual. An IRA account can be linked to multiple Individual or IRA accounts.
IRA Trust LLC • Advisor Client
An IRA account held at a designated Third Party Trustee.

This account is only available as a client account for a U.S Advisor.


Organization Customer Types

Customer Type Available Legal Vehicles Available Account Structures Explanation
Corporation LLC, CA, UK • Friends and Family
• Small Business
• Advisor
• Advisor Client
• Broker
• Broker Client
• Proprietary Trading Group
• Fund
• EmployeeTrack 3
An account in the name of a corporation, managed on the corporation's behalf by the corporation's officers or authorized traders.
Partnership LLC, CA, UK • Friends and Family
• Small Business
• Advisor
• Advisor Client
• Broker
• Broker Client
• Proprietary Trading Group
• Fund
• EmployeeTrack 3
An account in the name of a partnership, managed on the partnership's behalf by the partnership's officers or authorized traders.
Limited Liability Company LLC • Friends and Family
• Small Business
• Advisor
• Advisor Client
• Broker
• Broker Client
• Proprietary Trading Group
• Fund
• EmployeeTrack 3
An account in the name of a limited liability company ("LLC"), managed on the LLC's behalf by its officers or authorized traders.
Unincorporated Business LLC, UK • Friends and Family
• Small Business
• Advisor
• Advisor Client
• Broker
• Broker Client
• Proprietary Trading Group
• Fund
• EmployeeTrack 3
An account in the name of an unincorporated business, managed on the business' behalf by the business officers or authorized traders.


  1. Not available to IB India Pvt. Ltd.
  2. Only available to UK residents.
  3. You are an employee of a company that participates in IB's EmployeeTrack program.

http://www.interactivebrokers.com/en/p.php?f=accountConfig&p=cust

IRA Accounts

For IRA FAQs, click here.



US citizens living anywhere in the world and US resident aliens may open cash or margin Individual Retirement Accounts (IRAs).

IRA margin accounts are afforded all the benefits of a margin account, such as the ability to day trade and the ability to trade multiple currencies and multiple currency products, but are subject to the following limitations:

  • IRA accounts cannot borrow cash (i.e. 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.
  • IRA accounts can only cross-margin single stock futures, not stocks and options.
  • IRA accounts cannot borrow currencies.

Customers are advised to consult a tax specialist for further details on IRA rules and regulations.

When you open an IRA account with Interactive Brokers, you must select a an IRA customer type. The following IRA customer types are available:

  • Traditional
  • Traditional Rollover
  • Traditional Inherited
  • Roth
  • Roth Inherited
  • Simplified Employee Pension (SEP)
  • Simplified Employee Pension (SEP) Inherited

Transfer methods describe the way an IB IRA account is funded. All of the following transfer methods are cash transactions, and Trustee-to-Trustee transfers can also use an ACATS position transfer in Account Management.

  • Contribution - The dollar amount of assets you are contributing to an IRA account, subject to certain limits based upon your age and the year of the contribution. Contributions are reported to the Internal Revenue Service (IRS).
  • Rollover - A transfer of funds from an IRA account with another trustee/custodian, within 60 days following a distribution, to an IB-IRA account. Rollovers must be reported to the IRS. IRA account types must be the same in order to rollover assets; for example, if the originating account is a Roth IRA, your IB account must also be a Roth IRA.
  • Direct Rollover - A transfer of funds from a qualified plan (pension, 401(k) or other qualified retirement plan) with an employer to an IB Traditional IRA account. In a Direct Rollover, the trustee/custodian of your employer qualified plan (401(k) or pension) transfers your retirement assets directly to IB. In general, while there are no withholding taxes or penalties applied to a Direct Rollover, Direct Rollovers are reported to the IRS.
  • Trustee-to-Trustee - A transfer of funds from an IRA account held with another trustee/custodian to an IB-IRA account, where the assets are transferred directly from trustee/custodian to trustee/custodian, with no distribution of assets to you. ACATs position transfers are available, but the IRA account type and Tax ID must match in order to execute the transfer. Trustee-to-trustee transfers do not have to be reported to the IRS.

Refer to the Tax Reporting page on our website for information on IRS forms you will receive when transferring retirement plan assets.

The following table lists all available IRA types and applicable transfer methods.


IRA Type Explanation Transfer Method
Traditional A retirement savings plan that allows an individual taxpayer 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 you turn age 70½. Once you reach age 70½, you must withdraw at least a minimum amount – an annual Required Minimum Distribution (RMD) - by December 31 (if by wire) and December 29 (if by check or ACH) of each year. 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 on the amount not withdrawn. Contribution
Rollover
Direct Rollover
Trustee-to-Trustee
IRA Conversion
Traditional Rollover A traditional IRA account that receives assets directly from an employer-sponsored plan such as a 401(k) or pension plan within 60 days of distribution from the plan. As long as no other assets are contributed to the Traditional Rollover IRA, the monies may be rolled over into a new employer's plan. A traditional rollover IRA is commonly used if you are changing jobs or retiring. Contribution
Rollover
Trustee-to-Trustee
IRA Conversion
Traditional Inherited An IRA account you may set up as the beneficiary of a Traditional IRA you inherited from a spouse or other IRA account owner who has died, to receive a transfer of beneficiary IRA assets. Trustee-to-Trustee
Roth A retirement savings plan that allows an individual taxpayer to contribute earnings, subject to certain income limits. Earnings accumulate tax-free and contributions are nondeductible. Unlike Traditional IRAs, a Roth IRA account owner may continue to contribute after age 70½ if they have earned income. Withdrawals prior to age 59½ are subject to a 10% penalty unless special circumstances apply. There are no age requirements when an account owner must begin taking distributions. Contributions are subject to annual limits depending on the age of the account owner. Contribution
Rollover
Trustee-to-Trustee
IRA Recharacterization
Roth Inherited An IRA account you may set up as the beneficiary of a Roth IRA you inherited from a spouse or other IRA account owner who has died, to receive a transfer of beneficiary IRA assets. Trustee-to-Trustee
Simplified Employee Pension (SEP) A tax-deferred retirement plan for small businesses and self-employed individuals where an employee can set aside a percentage of pre-tax income into the plan. Annual contributions an employer makes to an employee's SEP-IRA cannot exceed the lesser of 25% of compensation, or $50,000 for 2012 and $51,000 for 2013. The same limits apply to contributions made to a self-employed individual's SEP-IRA. There is 100% vesting of all plan contributions. Distributions generally follow the same rules that apply to IRAs. Contribution
Rollover
Trustee-to-Trustee
IRA Conversion
Simplified Employee Pension (SEP) Inherited An IRA account you may set up as the beneficiary of a SEP IRA you inherited from a spouse or other IRA account owner who has died, to receive a transfer of beneficiary IRA assets. Trustee-to-Trustee

IRA Conversion

An IRA conversion is a transfer of Traditional, Traditional Rollover or SEP IRA assets to a Roth IRA with the same custodian or as a trustee-to-trustee transfer or rollover. A conversion is subject to Form 1099-R reporting for the distribution from the non-Roth and Form 5498 for the contribution to the Roth IRA.

The deadline to convert to a Roth IRA is December 31 of the year you choose to convert.

IRA Recharacterization

An IRA recharacterization is a transfer of converted Roth IRA assets back to a new or existing Traditional IRA account. Roth IRA converted amounts from a SEP IRA may also be recharacterized back to a SEP IRA account. IRS reporting is required for the distribution from the Roth IRA and the contribution to the non-Roth IRA.

Timing

Election to recharacterize must be made by the tax return due date, plus a six-month extension period (whether or not the return is extended). The deadline to recharacterize a 2012 Roth conversion is October 15, 2013. An IRA recharacterization is a transfer back to a new or existing Traditional IRA of converted Roth assets. Roth IRA converted amounts from a SEP IRA may also be recharacterized back to a SEP. IRS reporting is required for the distribution from the Roth and the contribution to the non-Roth IRA. Timing Election to recharacterize must be made by the tax return due date, plus the maximum six-month extension period (whether or not the return is actually extended).

Reconversion

Reconversion is defined as a second conversion (following a Recharacterization) from a non-Roth IRA to a Roth IRA. Taxpayer has already made a first conversion from a non-Roth to a Roth IRA and then recharacterized the conversion amount (including net earnings) back to a non-Roth IRA. You may not convert, recharacterize and then reconvert in the same tax year. IRS reporting is required.

A taxpayer cannot reconvert back to a Roth IRA until the later of:

  1. January 1 of the tax year following the year of the first conversion, or
  2. 30 days after the recharacterization to a non-Roth IRA

If the taxpayer makes a reconversion within the same tax year or before the 30 day waiting period, the reconversion is disregarded and the taxpayer must use the value of the non-Roth IRA at the time of the first conversion to calculate the taxable income for the year.

Additional Information

  • If you are age 70½ or older and you have not taken a Required Minimum Distribution (RMD) from your IRA, you must do so prior to converting to a Roth IRA.
  • For IRA Conversions from an IB traditional IRA (or IRA rollover) account, you first must open an IB Roth IRA if you do not already have one.
  • Your existing traditional IRA account will be closed upon completion of a full conversion transfer.
  • Please note that transfers of securities positions from a Traditional IRA to a Roth IRA will only be accepted between accounts with matching names and taxpayer identification numbers.
  • You cannot revoke or modify your election to Recharacterize after the election has been made.
  • An election to Recharacterize must be made by the federal tax return due date, plus the maximum six-month extension period, for example, October 15, 2011.

Consult your tax advisor before you decide to convert to a Roth IRA.

Contribution Year Roth, Traditional, & Direct Rollover Contribution Limit
(Under Age 50)
Roth, Traditional, & Direct Rollover Contribution Limit
(Age 50 and over)
Simplified Employee Pension
(SEP- IRA)
  Filing Deadline Excluding Extensions
4/15 of following year
Filing Deadline Excluding Extensions
4/15 of following year
Employer Filing Deadline Including Extensions
4/15 of following year or as extended 10/15
2013 5,500 6,500 Lesser of 25% eligible Comp. or $51,000
2014 5,500 6,500 Lesser of 25% eligible Comp. or $51,000

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.


http://www.interactivebrokers.com/en/p.php?f=accountConfig&p=ira

Base Currency

Your base currency determines the currency of translation for your statements and the currency used for determining margin requirements. Base currency is determined when you open an account. Customers who hold a margin account may change their base currency at any time through Account Management.

Cash accounts can have multi-currency (MULT) capability and can trade non-base currency products. 1

Base currencies are available in AUD, CAD, CZK, CHF, DKK, EUR, GBP, HKD, HUF, INR, JPY, MXN, NOK, NZD, SEK, SGD, or USD. You are not restricted from making deposits and withdrawals in any one of the aforementioned non-base currencies. 2



  1. Fees are charged in the currency of the traded product and liquidations may occur if fees result in negative (short) non-base currency balances.
  2. Accounts opened via IB (India) Pvt. Ltd can only use INR as the base currency. Accounts opened via Interactive Brokers Securities Japan, Inc. can only use JPY as the base currency.

http://www.interactivebrokers.com/en/p.php?f=accountConfig&p=baseCurrency

General


An IRA is a tax-deferred retirement account which allows an individual to set aside a certain amount per year with earnings tax-deferred until withdrawals begin at age 59 ½ or later. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others who have (or who files a joint return with a spouse who) received taxable compensation can make contributions to an IRA on a non-deductible basis. This non-deductible type of contribution does not qualify as a deduction against income earned that year, but earnings accumulate on a tax-deferred basis until the funds are withdrawn.

IB offers a wide range of IRAs, including:

  • Traditional
  • Traditional Rollover
  • Traditional Inherited
  • Roth
  • Roth Inherited
  • Simplified Employee Pension (SEP)
  • Simplified Employee Pension (SEP) Inherited

For complete descriptions of all of IB's available IRA accounts, see the IRA Information page.

Remember that in order to take advantage of the tax benefits offered by the Internal Revenue Code for a given year, customers must open and fund their IRAs by April 15 after the close of the tax year.

Yes. IRA customers will be responsible for the US $7.50 quarterly fee charged by our trustee. Please also note there is a monthly commission minimum of US $10.00 (US $3.00 if you are age 25 or under) or the non-USD equivalent. IB does not charge an account termination fee. For additional information regarding the IRA Quarterly fee, see the Other Fees page.

The minimum deposit required is US $5,000.

A traditional IRA (Individual Retirement Account) is a self-sponsored retirement savings plan. Contributions to an IRA may or may not be tax-deductible depending on your adjusted gross income. Consult your tax advisor to answer questions about your eligibility for tax deductions.

A conduit IRA is a separate IRA (i.e., non-commingled) account established to receive a distribution from a qualified plan having certain characteristics worth preserving. A good example is a rollover from a 403(b) tax-sheltered annuity into an IRA. Such an IRA may not be rolled back into a 403(b) account at a later date if your funds have been commingled with other IRA monies. A conduit IRA preserves the flexibility to roll the monies back into the original plan and take advantage of loans or other features not available in an IRA. There are no special requirements to establish a conduit IRA. It is only necessary to ensure that the monies are not commingled with any other IRA monies.

The Taxpayer Relief Act of 1997 created the Roth IRA, which allows tax-free withdrawals. Contributions to a Roth IRA are not deductible and the maximum annual contribution is the lesser of 100% of compensation or $5,000 for 2012 and $5,500 for 2013. Taxpayers who age 50 or older may contribute an additional $1,000. Non-working spouses may also contribute up to $5,000 ($6,000 if age 50 or older) to a Roth IRA. Taxpayers with joint adjusted gross income under $173,000 for 2012 and $178,000 for 2013 (the threshold for single filers is $110,000 for 2012 and $112,000 for 2013) may make full Roth IRA contributions. Contributions may be made beyond age 70½ and qualified distributions from a Roth IRA are tax-free, subject to IRS limitations. There are no required minimum distributions on Roth IRAs.

You can convert a traditional IRA to a Roth IRA. The amount that you convert is taxable at ordinary income rates, but the 10% premature distribution penalty tax does not apply.

Yes, you can. But remember that you can only contribute up to $5,000 per year, or $6,000 per year if you are age 50 or older, to any combination of traditional and Roth IRAs that you have. You cannot contribute $5,000 to each. On the other hand, your annual $2,000 contributions to a Coverdell ESA are entirely separate from the $5,000 or $6,000 yearly contribution limit for traditional and Roth IRAs.

A tax-sheltered annuity (TSA), also known as a 403(b) plan is named after a section of the Internal Revenue Code. It is an employer sponsored retirement savings program. Participation is limited by law to employees of public educational organizations and certain nonprofit organizations. The vast majority of participants are teachers in public schools, colleges and universities.

Yes. The IRS does prohibit certain transactions on traditional IRAs. Examples include: borrowing money from your IRA, contributing over your annual limit, rolling funds over from another IRA after the 60-day period has expired, or forgetting to take an annual distribution after you have reached 70 ½. As the IRS penalties on these transactions can be severe, it is best to review your situation with your tax advisor.

Go to the IB home page and select Open an Account for an Individual.

Stocks, covered call writing (covered shares are restricted), buying calls (funds equal to the aggregate exercise value of the long calls are restricted), and buying puts (shares subject to exercise are restricted), selling cash secured puts, spreads securities with European style expiration, long/short futures contracts, and long/short futures options (all combinations). The IB IRA is structured as a Stock Cash Account (if you choose to trade only stocks) or as a Stock Options Level I Account (if you choose to trade options in your IRA). IRAs may also invest in US dollar denominated futures contracts, and future option contracts.

IB IRA account holders benefit from the same low commission rates as other IB customers.

The Delaware Charter Guarantee & Trust Company, doing business as Principal Trust Company, a Company of The Principal Financial Group, will act as the Custodian for all IB IRAs. As Custodian, Principal Trust Company will handle certain functions, including acting as trustee for the retirement plan; maintaining such plans in compliance with applicable federal laws and regulations; maintaining account information, and preparing and filing IRS forms on behalf of Interactive Brokers. Principal Trust Company's address is 1013 Centre Road, Wilmington, Delaware 19805.

Contributions


You can contribute to a traditional IRA if you have earned income and are under the age of 70 ½. If you are not employed, but have a spouse who is, your spouse may be able to make a contribution on your behalf.

Generally, you can contribute the lesser of $5,000 ($6,000 if you are age 50 or over) and your taxable compensation for the year. This limit is the most that can be contributed to all IRAs, traditional or Roth, for a given year. If you file a joint return you may contribute the lesser of $5,000 ($6,000 if you are age 50 or over) and your combined compensation less your spouse's IRA contributions. The limits for 2013 are $5,500 and $6,500 for taxpayers age 50 or over.

Review the IRA Information page for additional information.

Yes. You can contribute to a Roth IRA or traditional IRA regardless of whether or not you have an employer-sponsored plan. In fact, IRAs are a great way to enhance your savings.

While participation in a retirement plan does not change how much you can contribute to an IRA, it can affect whether or not you're eligible to deduct your contributions to a Traditional IRA on your tax return. But keep in mind that as long as you're under age 70½ and you have earned compensation, you can always make nondeductible contributions to a Traditional IRA and benefit from tax-deferred earnings.

The name says it all, catch-up contributions are specifically designed to help those who are getting closer to retirement catch up on their retirement savings. You're eligible as long as you're at least 50 years old during the year the contribution is for, and of course, as long as you meet the eligibility requirements for traditional or Roth IRAs. Click here for contribution limits.

Eligibility to make Roth IRA contributions are determined by your Modified Adjusted Gross Income (MAGI):

MAGI Contribution

  • 2012
  • Single filers
    >$110,000 Full contribution
    $110-125,000 Partial contribution
    $125,000 + No contribution
  • Married filing joint
    >$173,000 Full contribution
    173,000-183,000 Partial contribution
    $183,000 + No contribution
  • Married filing separately
    >$10,000 Partial contribution
    $10,000 + No contribution
  • 2013
  • Single filers
    >$112,000 Full contribution
    $112.000-127,000 Partial contribution
    $127,000 + No contribution
  • Married filing joint
    >$178,000 Full contribution
    178,000-188,000 Partial contribution
    $188,000 + No contribution
  • Married filing separately
    >$10,000 Partial contribution
    $10,000 + No contribution

To see if you're eligible to make a Roth IRA contribution, consult your tax advisor or see IRS Publication 590.

Yes, provided the contribution does not exceed your earned income for the year and you meet AGI eligibility guidelines.

No, contributions to a Roth IRA are not tax-deductible.

Wire Transfers, or Cash are currently the only available deposit options. Before you contribute or transfer funds, you must fill out an IRA Deposit Form. Click here for instructions on sending funds for IRAs.

You may withdraw contributions at any time until the due date for your tax return for the year of contribution (including an extension if applicable). Earnings on the contributions must be included as income.

Your contributions may be completed by your tax filing deadline, including extensions, for a given tax year. On IRS Form 5498, Principal Trust Company will report contributions for the tax year that we receive the deposit.

The election for a prior year contribution is available from January 1 to April 17.

Distributions


To withdraw funds, complete our Withdrawal Instructions form under Account Management. Customers may request Normal, Early, Early with Exception, Disability, Death, and Excess Contribution Distributions. Please choose the correct Distribution type on Withdrawal Instructions form under Account Management. You will need to also specify the amount of withdrawal and tax withholding instructions.

In general, withdrawing your IRA prior to age 59 ½ means you'll have to pay a 10% early withdrawal penalty. You may avoid the penalty if you're withdrawing because of:

  • First time home purchase ($10,000 lifetime limit)
  • Qualified education expenses
  • Substantially Equal Periodic Payments
  • To pay for health insurance premiums if you receive unemployment benefits for more than 12 consecutive weeks
  • Medical Expenses in excess of 7.5% of your AGI (Adjusted Gross Income)
  • Death
  • Disability
  • IRS Levy

Please speak to your tax advisor prior to taking a distribution to determine whether the 10% early withdrawal penalty will apply.

Yes. If your account balance is sent directly by the plan administrator to another qualified plan or to an IRA trustee/custodian on your behalf, the 20% withholding tax requirement does not apply. However, if you do not request a direct rollover of your distribution, 20% will be withheld for federal income taxes.

When may I withdraw my Roth IRA earnings income tax free?
Roth IRA earnings may be withdrawn tax-free if your Roth IRA has been established for at least five years and one of the following apply:

  • Age 59 ½
  • Disability
  • Death
  • First time home purchase ($10,000 lifetime limit)

You're not required to take distributions from a Roth IRA as long as you live. You can allow your money to grow in a Roth IRA free of current taxes for as long as you choose.

In a traditional IRA, you are required by law to begin taking distributions from your IRA in the year you reach age 70½. The amount of the distribution is based on your age and the value of your account. Internal Revenue Service Publication 590 provides the information to calculate the minimum distribution. Required minimum distributions must start no later than April 1 of the year following the year in which you attain age 70½. Failure to take the required minimum distribution results in an IRS penalty tax of 50% of the amount that should have been distributed.

Distributions from a traditional IRA are treated as income to you. You will receive an IRS form 1099-R each January summarizing the amount distributed and the taxes withheld, if any. In a Roth IRA, if you take a distribution after the account has been open five years, the distribution will not be included in your income. If taken within the 5-year period, it will be taxable, like a traditional IRA distribution.

An "early" withdrawal is generally one taken before age 59½ in a traditional IRA or within the first five years of a Roth IRA. In addition to the amount added to your income, the IRS may assess an additional 10% penalty. You should consult with your tax advisor regarding the tax consequences.

IB only allows a lump sum distribution payment which can be made on-line.

Rollover/Transfers


A direct rollover is a distribution from a qualified retirement plan such as a pension, profit-sharing, Keogh (HR-10), or 403(b) Tax-Sheltered Annuity program, which is sent on your behalf directly to a new trustee/custodian. A direct IRA rollover can be accomplished by asking the administrator of your qualified plan to make the distribution directly to the new trustee/custodian. Only one direct rollover from an IRA account to another IRA account is permitted in any one-year period. Values distributed from a qualified retirement plan, which are not directly rolled over into an eligible qualified plan or IRA are subject to a 20% federal withholding tax.

You may move IRA assets from an IRA or qualified plan through a transfer or a rollover. A direct transfer of cash or assets from an IRA or qualified plan to new IB IRA account is generally tax-free and does not constitute a rollover. A rollover is a tax-free distribution of cash or assets from an IRA or qualified plan that you contribute to a new IB IRA account within a 60 day period to complete the rollover transaction. While the rules for rollovers and transfers differ, they accomplish similar objectives. Both rollovers and transfers facilitate the tax-free movement of IRA monies from one trustee or custodian to another.

One kind of IRA rollover involves moving monies from an existing IRA account to another IRA account, and another requires a distribution from a qualified pension, profit-sharing, or 403(b) tax-sheltered annuity plan. In either case, you have 60 days in which to complete the rollover. One IRA rollover per 12 calendar months is permitted.

Yes. A rollover takes place when the IRA funds are paid directly to you and re-deposited (roll-over) into an IRA within 60 calendar days of receipt. The 60-day period begins the day after you receive the payment. A rollover transaction from an IRA may not occur more than once during a 12-month period. This 12-month rule applies to each separate IRA you own and is determined from the date the IRA funds are received. (The 12-month limitation does not apply if the funds are transferred directly from one financial organization into another or if they are rolled over or directly rolled over from a Qualified Plan into an IRA).

Open an IB Rollover IRA and in the funding section a letter will be created that informs your benefits administrator that you would like to directly roll over your distribution into your IB Rollover IRA account. You will have to sign a form authorizing the move. Next, your employer will transfer your payout to your IB IRA account, or they will provide you with a check made out to IB. If the latter is the case, once you receive the check you should deposit it immediately into your IB Rollover IRA. The deposit must be within the time frame permitted under the Internal Revenue Code.

Interactive Brokers Automated Customer Account Transfer Service (ACATS) is the National Securities Clearing Corporation's (NSCC) central processing system for the transfer of positions and accounts between brokerage firms that are participants of the NSCC's ACATS program. The NSCC's ACATS system enables your broker to enter, review, and settle account transfers in a fully automated system. A request for an Automated Customer Account Transfer (ACAT) of assets must be sent to the receiving broker. Your IB account must be opened and approved before you begin the ACAT.

Under normal circumstances, an ACAT should take between four to eight business days. With some circumstances, such as an attempt to transfer unsettled funds, positions that are not paid in full, or restricted stock shares, this process could take longer. The ACAT feature is available under Account Management. Choose Deposit Instructions from the customer menu. You will be prompted to select the firm and account number at the firm.

Interactive Brokers provides paper transfer forms for IRA Rollovers and Trustee-to-Trustee transfers. Both forms enable your existing broker to transfer your IRA funds by physical check or by wire transfer. Your IB account must be opened and approved before you begin transfer.

Under normal circumstances, the non-ACATS transfer methods should take between two to six weeks. The paper forms are available to print, complete, and mail to IB on our website by clicking IRA Rollover or Trustee-to-Trustee transfer.

If the other broker participates in the Automated Customer Account Transfer Service (ACATS) program, then contact your other broker to submit the transfer out electronically. All other outgoing IRA Rollover or Trustee-to-Trustee requests must be mailed to the address below.

Interactive Brokers LLC
Attn: Retirement Accounts, Transfers
209 South LaSalle Street, 10th Floor
Chicago, IL 60604

In most cases, there is no limit on the amount you may transfer or roll over into an IRA. You are simply moving the money from one type of retirement plan to another. You may transfer or roll over your IRA regardless of your age. However, if you are 70½ or older, you must receive a minimum required distribution from your IRA each year. This should be taken into account in planning your rollover.

Limits do apply to multiple rollover transactions. You may receive an IRA distribution and roll the funds into another IRA once during a twelve-month period. This rule applies to each IRA separately and begins on the date funds are received.

Yes.

Yes, it is possible to consider a rollover of funds from your retirement plan directly into a Roth IRA. Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan.

Yes! Balances in a government 457(b) deferred compensation plans are eligible to roll into an IRA.

If you are self-employed and have set up your own self-directed retirement plan that offers investing flexibility, and have an independent administration firm which neither limits investment choices nor gives investment advice, this plan can be transferred into a retirement trust at IB through a Direct Rollover.

Yes, IB supports internal funds transfers for accounts with a matching Account Type, Account Title, and tax ID. Requests may be submitted on the Funds Transfers page in Account Management/Funds Management. For additional information, see Internal Funds Transfer.

Form 5498


Form 5498 reports your contributions, rollovers and the year-end fair market value.

Information on your Form 5498 is provided by your investment firm.

The reporting deadline for providing this to the IRS for the preceding tax year is May 31.

The IRS requires that this form be furnished to you by the trustee of your account by April 30 for the preceding tax year. To access and print your Forms 5498, log in to Account Management with your IB username and password.

  • If you're using the legacy Account Management version that has menus on the side, from the Report Management menu select Tax Forms.
  • If you're in Account Management version 2.0 with the menu along the top, select Reports and then select Tax Forms.

You have the right to request a date of death valuation. This service is available through Principal Trust. Please send a written request with a $40 check (service charge) directly to Principal Trust.

Form 5498-ESA


Form 5498-ESA reports contributions, rollovers, and transfers from other Coverdell Education Savings Accounts (ESA).

Information for your Form 5498-ESA came from information provided by your investment firm.

The reporting deadline for providing this information to the IRS is May 31 for the preceding tax year.

The IRS requires that this form be furnished to you by the trustee of your account for the preceding tax year by April 30. To access and print your Forms 5498, log in to Account Management with your IB username and password.

  • If you’re using the legacy Account Management version that has menus on the side, from the Report Management menu select Tax Forms.
  • If you’re in Account Management version 2.0 with the menu along the top, select Reports and then select Tax Forms.

If the total contributions made to all of your Coverdell ESAs exceed $2,000, you must withdraw the excess (plus earnings) by May 31 to avoid a penalty.


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