As Americans Refocus On Savings, Schwab Provides Ease And Value For Traditional IRA, 401(k) Rollover And Roth IRA Investors

As Americans enter tax season with a renewed focus on the importance of saving, Charles Schwab is providing a smart and easy way to help minimize taxes while building retirement savings with IRA products that are easy to open and fund and provide value for investors, as well as access to professional guidance. In about 15 minutes, investors can open a traditional or Roth IRA account prior to the April 15 deadline at www.schwab.com/OpenIRA. The Schwab IRA has no account service fees and a low $1,000 minimum to open an account. Schwab also provides clients with a number of online IRA tools and resources, in addition to access to a complimentary consultation with a Schwab professional.

“People are recognizing the opportunity to get back into the market and use the market momentum as a way to refocus on their savings goals, particularly younger investors,” said Rene Kim, Charles Schwab senior vice president. “Because of the compounding savings power in an IRA, money saved now can be much more valuable than money saved later.”

Schwab’s Smart, Easy IRA

A Schwab IRA makes it easy to open a retirement account online in about 15 minutes. Schwab IRAs offer a number of advantages to investors, including no account service fees, low minimum balance requirements, automatic deposits, and access to complimentary consultations to help people through the process of opening their account and matching their portfolio to their needs and risk profile. Schwab IRAs also provide access to a wide range of investment choices that make it easy to invest, including ETFs and hundreds of no-load, no-transaction-fee mutual funds, as well as stocks, bonds, CDs and more. Schwab also offers a wide range of information and resources to help investors find the IRA type that’s right for them, available at www.schwab.com/OpenIRA or by calling 1-800-548-5576.

Schwab IRA investors also benefit from the firm’s recent reductions in online equity trade commissions designed to provide greater value for investors of all sizes, regardless of the frequency or size of their trades. As of January 19, 2010, Schwab retail investors pay just $8.95 per online equity trade. ¹

Rollover IRA

The Schwab Rollover IRA offers a number of advantages to investors and 401(k) plan participants, including no account service fees, low minimum balance requirements and automatic deposits. Schwab also makes available complimentary 401(k) Rollover Consultants who can work with an individual’s former plan administrator to request a funds transfer, open a new Rollover IRA over the telephone, help complete all the required paperwork, and arrange an appointment with a Schwab Professional to help select investments once the account is opened and funded. For additional information, Schwab encourages investors to visit www.schwab.com/rollover or call 1-866-855-9095.

“For people with 401(k) accounts at previous employers or workers leaving their current job, we urge them to investigate their options in approaching and maximizing their retirement savings,” said Kim. “In many cases, rolling an old 401(k) into an IRA can be a strategic move, because it is tax free, there is no penalty, and an IRA provides more investment choices. In addition, a rollover IRA can also keep retirement savings more top of mind. People who leave money in a previous employer’s 401(k) plan often forget the money is even there, which can result in asset allocations falling way off balance based on an individual’s savings objectives and risk tolerance.”