What are the different contribution methods to fund my IRA?
There are multiple options for funding an IRA, each of which may be subject to contribution limits, limits on deductibility, and / or specific procedural requirements. Accordingly, we recommend that you consult your financial or tax advisor for advice on the best IRA funding strategy for your particular circumstances. Options for funding your Traditional or Roth IRA include the following:
Normal Contributions: Your deposits are applied to your annual IRA allowable contribution limit, including allowable catch-up contributions, if applicable. You can process this contribution online with a funds transfer, or by submitting the IRA Contribution Direction form.
Prior Year Contribution: Your deposits in the current year that are applied to your annual IRA allowable contribution limit for the prior year, including allowable catch-up contributions, if applicable. You can process this contribution by the income tax filing deadline (typically April 15th) either online with a funds transfer, or by submitting the IRA Contribution Direction form.
Bank to Bank Transfers: Your IRA funds held at an external bank made payable to AENB that you request to be directly transferred to your AENB IRA. You can process this contribution by submitting the IRA Bank to Bank Transfer form.
IRA Rollovers: Your IRA funds that you received made payable to you from an external bank IRA or from your employer retirement plan that you now request to be applied to your AENB IRA within 60 calendar days. You can process this contribution by submitting the appropriate Rollover form for your situation.
Other Contributions: Your other deposits such as military contributions, beneficiary death payment, or a recharacterization treating a contribution made to one type of IRA as having been made to a different type of IRA for tax purposes. You can process this contribution by submitting the IRA Contribution Direction form.
*The Annual Percentage Yield (APY) as advertised is accurate as of . Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened.
For a CD account, rates are subject to change at any time without notice before the account is opened. Your rate will be fixed on the business day‡ we receive your completed application, provided we receive your deposit within 30 days after your application is approved. After a CD is opened, additional deposits to the account are not permitted. Early CD withdrawals may be subject to significant penalties which could cause you to lose some of your principal. Please see the Deposit Account Agreement for additional terms and conditions and Truth-in-Savings disclosures.
**The national rate referenced is from the FDIC's published Monthly Rate Cap Information for Savings deposit products. Visit the FDIC website for details.
†You are generally permitted to make up to nine (9) withdrawals or transfers out of your High Yield Savings Account during a monthly statement cycle. However, please note that there are strict rules for withdrawing money from an IRA plan (including an IRA High Yield Savings Account) before retirement age without incurring a penalty. Read More in FAQs.
‡For purposes of transferring funds, business days are Monday through Friday, excluding holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin to be processed on the next business day.
♢Calculations are estimates of expected interest earned. Actual results may vary, based on various factors such as leap years, timing of deposits, rounding, and variation in interest rates. The first recurring deposit is assumed to begin in the second period after any initial deposit.
§IRA Contributions are subject to aggregate annual limits across all IRA plans held at American Express or other institutions. IRA distributions may be taxed and subject to penalties based on IRS guidelines. Required minimum distribution, if applicable, is only relevant to this IRA plan and does not take into consideration other IRA plans held at American Express or other institutions. Please see IRS.gov for more information. We recommend you consult with a financial or tax advisor when making contributions to and distributions from an IRA plan account.