Account types available online or by requesting an application
- Individual Account: An account opened in the name of one person.
- Joint Account: An account owned jointly by two or more people.
- Custodian Account: An account controlled by a custodian rather than the owner of the assets. Custodian accounts are often used for minors or other individuals who are unable or unwilling to handle own assets.
- Trust Account: An account funded by a person who names a trustee for a designated beneficiary.
- Individual Retirement Account: A retirement account that allows you to contribute a limited yearly sum toward retirement. Taxes* on the capital gains and interest earned in the account are deferred.
- Rollover IRA: A rollover IRA is an IRA that is used to hold assets that have been distributed from an employer sponsored retirement plan. Most often used when changing jobs or retiring, an eligible distribution from such plans can be rolled over directly into a Formula Investing IRA without incurring any tax* penalties and assets remain invested tax*-deferred.
- Roth IRA: A Roth IRA is funded with after-tax* dollars and offers the opportunity for federally tax*-free growth and withdrawals provided certain conditions are met. Contributions are subject to income limitations. Starting in 2010, as a result of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the annual contribution income restrictions will still apply but the conversion income limit will be removed. Investors who convert in 2010 have the option to spread their tax* liability by including half of the conversion in their 2011 tax* return and half in their 2012 tax* return. In the following years, they will have to pay all taxes* the year they convert.
- SEP IRA: A retirement plan funded by the employer for businesses of any size.
Account types available by requesting an application
- Third Party Retirement Plan: A third party retirement plan serves as an investment vehicle only. Your retirement plan administrator or trustee(s) handles your plan's recordkeeping and tax* reporting services. The retirement plan must be qualified under Section 401(a) of the Internal Revenue Code such as 401(k), profit sharing, or money purchase and defined benefit plan.
- Corporate: Account opened in the name of a corporation.
- Partnership: Account opened in the name of a partnership.
- Limited Liability Company: Account opened in the name of a LLC.
*Please consult with your tax advisor regarding your specific situation as Formula Investing does not provide tax advice.
