How to Open an FISN IRA Account

The Federally Insured Savings Network (FISN) is known for finding competitive rates on certificates of deposit (CDs). Many people open an FISN IRA account because FISN also offers a variety of FIDC-insured CD options for IRA holders. In addition, FISN also offers additional insurance for CDs held in an FISN brokerage account.

Difficulty: Moderately Easy

Instructions

1. Determine which type of IRA you want to open. Your choices of IRAs with FISN are traditional, Roth, rollover, SEP-IRA or IRA beneficiary distribution. One of the most popular is the Roth IRA, which allows you tax-free withdrawals and continued tax-free growth after the age of 70 1/2.

2. Choose the same type of IRA you already have if you are transferring an existing IRA from another financial institution. Furthermore, if you are rolling over a Roth IRA, you need to know the 5-year aging date and if there are any nondeductible annual contributions that aren't eligible to be rolled over. The 5-year aging date is January 1 of the year you made your first contribution to the fund.

3. Consider if you will complete an IRA distribution form if you are near the age of 59. Beginning at 59 1/2, distribution of IRA funds is optional, but it becomes mandatory at 70 1/2. Filling out the form ahead of time allows you control over when you want to have distributions begin, and you can always fill out a new form to change your plan.

4. Visit the First Internet Securities Network (FISN) website to complete or download the necessary application forms to open an account (see Resources below). Whether you complete them online or download them, you must sign and mail them to FISN.

5. Complete the application and select a core money market fund. It is highly advisable to speak directly with a financial adviser or broker to determine the best fund for your unique needs.

Tips & Warnings

• FISN will open IRA accounts to hold all types of CDs except a fixed-rate jumbo CD.
• If you don't have a computer, call FISN at [phone] to have an account application mailed to you.
• You also must fill out an IRA beneficiary designation form. In essence, choosing a beneficiary for your IRA is like giving it its own will so that it won't go directly to your estate when you die. Instead, the life expectancy of your designated beneficiary determines when the IRA will be paid out, allowing it to mature.

Resources

• Find an IRA application at the FISN website.