There are two main ways to fund your Choice IRA:
Make a new contribution (i.e. deposit) to your IRA
Move assets from an existing retirement account into your IRA
IRA Contributions
You can make an IRA contribution - or new deposit - by connecting your bank account through the Choice app or by sending money to Choice directly via check or wire transfer. This is fastest way to fund your account.
A few things to keep in mind:
IRA and 401(k) contributions are subject to annual limits based off age, income and other factors like marital status
IRS rules only allow for IRA contributions to be made in US dollars
Certain contributions may be tax-deductible depending on your income and employment situation
Next Steps
Moving Assets from an Existing Retirement Account
There are three ways to move assets from one of your other retirement accounts to your Choice IRA without triggering a tax event or incurring penalties:
IRA Transfer: We work with the bank or financial institution where your IRA is currently held to transfer some or all of your assets directly into your Choice account. Cash transfers generally take 10 business days to complete, while in-kind transfers (which don't require you to sell your investments before transferring) can take up to a month.
Direct Rollovers: You request a distribution from a qualified retirement plan - like a 401(k) or 403(b) - to be made payable directly to your Choice IRA. Rollover funds are available in your account the day after Choice receives them, however processing times may vary for your plan administrator to process the distribution.
Indirect Rollovers: Similar to a direct rollover, however the distribution is payable directly to you. To avoid a tax penalty you must deposit the distribution into your Choice IRA within 60 days. This is generally used as a last resort because of the risk of penalty.
Next Steps
Article: How to initiate an IRA transfer
To avoid delays make sure you are moving your assets into a like account type. For example:
Traditional IRA ➞ Traditional IRA
Roth IRA ➞ Roth IRA
Traditional 401(k) ➞ Traditional IRA
Roth 401(k) ➞ Roth IRA
You can find more information from the IRS on allowable transfers and rollovers here.
IRA Contribution Limits
Contributions can only be made in US Dollars per IRS rules. Unfortunately this means you cannot contribute bitcoin or other assets you already own outside of your IRA into an IRA.
Contribution limits for 2021/2022
$6,000 if you are under 50 years old
$7,000 if you are over 50 years old
Roth IRA Contributions for 2021
If you are filing single, you must have a modified adjusted gross income (MAGI) under $125,000 to make the maximum contribution to a Roth IRA.
If you are married and filing jointly, your household MAGI must be less than $198,000 to make the maximum contribution to a Roth IRA.
If eligible, you and your spouse can both open your own Roth IRAs and contribute up to the maximum limit.
Roth IRA Contributions for 2022
If you are filing single, you must have a modified adjusted gross income (MAGI) under $129,000 to make the maximum contribution to a Roth IRA.
If you are married and filing jointly, your household MAGI must be less than $204,000 to make the maximum contribution to a Roth IRA.
If eligible, you and your spouse can both open your own Roth IRAs and contribute up to the maximum limit.
If you do not meet the qualifications to contribute to a Roth IRA directly, Choice supports IRA conversions for clients that want to benefit from the tax advantages of a Roth account - a strategy commonly referred to as Backdoor Roth IRAs.