How to Open a Traditional IRA With a Cash Deposit

A traditional IRA, also known as an Individual Retirement Account, is an attractive vehicle for long-term retirement savings. The benefits include an immediate tax deduction and tax-deferred growth until withdrawal. A Traditional IRA can be opened through banks, mutual funds and brokerage firms. The easiest way to open an account with a cash deposit is to go to a brick-and-mortar bank.

Things You'll Need

• Cash

Instructions

How to Open a Traditional IRA with a Cash Deposit

1. Go to a brick-and-mortar bank and sit down with a New Account Representative.

2. Inquire about the investments and rates offered for a Traditional IRA. Most banks offer a money market fund and/or CD (certificate of deposit) as options.

3. Select the investment choice you desire. Fill out new account paperwork for a traditional IRA.

4. Turn in the completed paperwork to the Account Representative along with your cash deposit. Procure a receipt for tax deduction purposes.

Tips & Warnings

• Traditional IRAs are also available through online banks, mutual funds and brokerage firms. These institutions, however, normally require a check or cashier's check. If you prefer to open an account at one of these institutions, deposit the cash into your checking account first or convert it to a cashier's check as directed by the firm. Discuss with the Representative the differences between a Traditional IRA and Roth IRA if you are not familiar with the differences. There may be a financial advantage for you to choose a Roth IRA instead.