How to Open an IRA with less than $100

An IRA or Individual Retirement Account is a great retirement vehicle even if you have a 401k or pension plan from your employer. An IRA can add tax benefits at filing time. The problem for most people is that banks and investment groups usually require a minimum of $1000 to open an IRA. So what's the average Joe (or Jane) suppose to do? Check out my steps for opening and IRA for less than $100.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Checking account.
• $25 starting money.

1. Contact Primerica or log on to Sharebuilder.com
2. If you contact Primerica, be careful not to get swindled into their ploy of trying to recruit you. Make it understood that you only want an IRA and nothing else. If you don't want to deal with them just go to Sharebuilder.com
3. Open an account. Roth or regular depending on when you want to pay your taxes - now or when you retire.
4. Schedule automatic deposits from your checking account.
5. Each year when you file your taxes, wait for your 1099R before you file.
6. Start withdrawing money when your 59 1/2. If you take money out sooner there is a penalty and taxes.