Charles Schwab Account

Traditional IRA Accounts provide immediate tax relief (if qualified) and allow accumulated financial gains with tax-deferment until the funds are withdrawn for retirement purposes.  CharlesSchwab charges nothing to open a Traditional IRA or to maintain such a retirement account.  Traditional IRAs involve certain restrictions as to the age of the owner of the account, mandatory withdrawals and more, all the particulars of which are available on Schwab’s website.  

Roth IRA Accounts require a minimum of $1,000 to open, qualified withdrawals can be made tax-free and there are no mandatory withdrawals.  Details about Roth IRAs are available on the Schwab website. 

Rollover IRAs are IRA accounts that were opened through a financial institution other than CharlesSchwab and are merged into a new account with the Schwab group. Details about this particular type of IRA account are also available on Schwab’s website.

Individual 401(k) Plan — Individual 401(k) Plans are designed for businesses that have no employees other than the business owner.  These Accounts allow high contribution limits and are easy to administer and maintain. 

SEP-IRA Accounts — SEP-IRA Accounts are designed for businesses that employ just the business owner and minimal number of employees that allow for tax deferred earnings via flexible annual contributions for business owners and employees and are also easy to administer and maintain. 

Simple IRA Accounts – Simple IRA Accounts are designed for businesses with up to 100 employees and allow for employee salary-deferred contributions and employer matched contributions of up to 3%.  These types of accounts are also easy to administer and maintain. 

Personal Defined Benefit Plans are designed to help self-employed individuals and small business owners save money for retirement by making very high contributions to reach a certain predefined annual retirement amount of money and then contributions are adjusted annually to reach that predefined goal.  These accounts require $1,500 to set up and annual service fees are involved, as well as commissions of $8.95 per online trade. 

Company Retirement Accounts (CRAs) are also known as Pension Trusts and hold your particular plan’s assets as well as provide investment options, tools, research and other resources.

Trust Accounts – Schwab Trust Accounts are available for estates and trusts of any kind or size and offer all the features of a regular Schwab Brokerage Account for easy management of an account holder’s assets upon his or her death.  A minimum of $1,000 is required to open a Trust Account but that minimum can be waived if a Schwab High Yield Checking Account is newly opened or already established from which a $100 monthly recurring automated deposit can be made into the Trust Account. 

Estate Accounts – Schwab One Estate Accounts are designed for court-appointed executors or estate administrators to manage and distribute all of an estate’s assets.  Estate Administrators are able to use these types of accounts for consolidating estate assets, accessing cash to pay covered estate expenses or for payment of taxes.  Opening this type of account requires a minimum of $1000 unless a Schwab High Yield Checking Account already exists or is newly opened from which monthly recurring deposits are made into the Estate Account. 

Charitable Accounts – Schwab Charitable Accounts provide a structure for recordkeeping and management of charitable contributions for individual tax planning or independent 501(c)(3) charitable organizations. Charitable Accounts require donor fund account minimums of $5,000, details of which are available on the Schwab website.

529 College Savings Plans are designed for high contribution limits for yourself or someone else and offer immediate tax advantages.  

Education Savings Accounts are tax-deferred savings plans to help pay for educational expenses of the named beneficiary from Kindergarten through and including college.  

Custodial Accounts allow benefactors to make financial gifts to a minor that can be used for education or any other purpose and the funds in the account are managed on behalf of the minor (until the age of majority) by the Custodian who opened the account, but the assets included in the Custodial Account always belong to the named beneficiary.