Ally Invest Help Center: IRAs FAQs | Ally Invest (2024)

FAQs

Is Ally good for IRA? ›

If you're closer to retirement, you may want to consider one of our Ally Bank IRA options instead. They're FDIC-insured and better suited for the shorter term with more consistent returns. We offer the following accounts: IRA High Yield CD.

If you make a full transfer out of your Ally Invest IRA account, there's both a $50 transfer fee as well as the previously mentioned $25 termination fee. Partial account transfers have a $50 transfer fee.

You can either log in to online banking and complete the distribution request, call us 24/7 at 877-247-2559 , or complete and mail in the Distribution Form .

How do I withdraw funds? You can request a transfer by logging in and selecting Transfers. You can also wire funds to another account for a $30 fee or request a check for a $5 fee.

The safest place to put your retirement funds is in low-risk investments and savings options with guaranteed growth. Low-risk investments and savings options include fixed annuities, savings accounts, CDs, treasury securities, and money market accounts. Of these, fixed annuities usually provide the best interest rates.

IRA drawbacks

One drawback of using IRAs to save for retirement is that the annual contribution limits are relatively low. In 2024, you can contribute up to $23,000 to a 401(k) plan, but you can only contribute $7,000 to an IRA in 2024 unless you're at least 50 years old, in which case the limit is $8,000.

The biggest difference between the two is that Fidelity has its own mutual funds, while Ally Invest does not. Fee-conscious investors might prefer Fidelity since it offers no-transaction-fee funds as well as funds with no management fees. However, costs are generally low at both brokers.

There are no income limitations to contribute to a non-deductible Traditional IRA, and the maximum contribution per year is $6,500 for tax year 2023 and $7,000 for tax year 2024 ($7,500 for tax year 2023 and $8,000 for tax year 2024 if you're age 50 or over).

Use any of the 75,000+ Allpoint® and MoneyPass® ATMs in the U.S. for free. We reimburse up to $10 per statement cycle for fees charged at other ATMs nationwide. Get cash back at most grocery stores, gas stations and other retailers when you make a purchase with your debit card – there's no fee.

While you must be 59½ to withdraw funds from a traditional IRA without penalty, there are some exceptions to that rule in certain qualifying circ*mstances.

Can I withdraw all my money from my IRA at once? ›

You can take distributions from your IRA (including your SEP-IRA or SIMPLE-IRA) at any time. There is no need to show a hardship to take a distribution. However, your distribution will be includible in your taxable income and it may be subject to a 10% additional tax if you're under age 59 1/2.

Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss.

As of May 28, 2024, stocks have a one-business-day (T+1) settlement period, so proceeds generated by selling stock in a cash account are considered unsettled for one business day following the trade date. Read more: Get the investing guidance you need from an advisor.

You can submit a wire transfer request using our online form . Keep in mind that there's a $20 fee for each outgoing domestic wire transfer.

Fidelity is the best all-around full-service broker thanks to its combination of IRA account types, investment offerings, research, and customer support. For investors who need help with their IRAs, Charles Schwab is the best IRA for beginners, while Merrill Edge provides the most access to human advisors.

Charles Schwab is one of the best overall IRA providers, with high-quality customer service, no account minimum and low fees. The company offers a large selection of no-transaction-fee funds, gives users access to extensive research and charges no commission for stock, options and ETF trades.