IRA FAQ 

1. What is an IRA? 

2. What IRA account types are offered at M1? 

3. What's the difference between Traditional and Roth IRAs?

4. Can I open and contribute to multiple IRAs at M1? 

5. Can I open a Spousal IRA? 

6. What is the minimum initial deposit for IRAs? 

7. Can I borrow from my IRA? 

8. Can I transfer my Individual or Joint account to my IRA? 

9. What is a Roth conversion? 

10. What is an IRA recharacterization? 

 

What is an IRA?

An individual retirement account (IRA) is an account that helps investors save money for retirement with tax-free growth or on a tax-deferred basis. An IRA itself is not an investment – rather, it’s a type of account that contains investments in the form of stocks, bonds, mutual funds, etc. 

  

What IRA account types are offered at M1? 

  • Roth IRA 
  • Traditional IRA 
  • SEP IRA 

Learn more about opening an IRA. 

 

What’s the difference between Traditional and Roth IRAs? 

Traditional IRAs and Roth IRAs are the most popular types. With a Traditional IRA, your money goes in on a pre-tax basis similar to a 401(k). You can take tax deductions during the years in which you make contributions, and your money grows on a tax-deferred basis until you retire. If you do, you will pay taxes on your withdrawals at your ordinary income tax rate. 

Contributions that you make to a Roth IRA are made after tax. Your savings can then grow tax-free until you retire. You will not have to pay taxes on your withdrawals after you retire, and you do not have to take the required minimum distributions at age 70½. 

Learn more about the difference between Traditional and Roth IRAS. 

 

Can I open and contribute to multiple IRAs at M1? 

Yes, you can open and contribute to multiple types of IRAs at M1.   

From 2019-2021, the total contributions you make each year to all your Traditional IRAs  and Roth IRAs can't exceed:   

  • $6,000 ($7,000 if you're age 50 or older)  

OR  

  • If less, your taxable compensation for the year.
     

Can I open a Spousal IRA? 

No, M1 does not offer Spousal IRAs.  

All accounts opened under the same email are registered under the tax ID of the primary account holder. 

 
What is the minimum initial deposit for IRAs? 

$500 is the minimum initial deposit for retirement accounts at M1. After your initial deposit, any amount of $10 or more can be deposited. 

  

Can I take an M1 Margin Loan from my IRA? 

No, IRA accounts are not eligible for an M1 Margin Loan. 

  

Can I transfer my Individual or Joint account to my IRA? 

No, since an Individual/Joint account is taxable and an IRA account is tax advantaged, the IRS doesn’t allow the direct transfer of securities or cash from an Individual/Joint account into an IRA account.   

You can withdraw funds from the taxable account and deposit them into the IRA account as a contribution.  

  

What is a Roth conversion? 

A backdoor conversion moves all, or part, of the balance of an existing traditional IRA into a Roth IRA. Learn more about conversions.

  

What is an IRA recharacterization? 

An IRA recharacterization occurs when contributions made to an IRA are transferred from the current IRA to an IRA of a different type. Learn more about IRA recharacterizations. 

 

If you have further questions, please contact us.

 

M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. 

 

Was this article helpful?
/
0 out of 0 found this helpful

Still need help?

We're here for you.

Contact us