How do I set up an IRA? Author: Randy Yingger Website: http://www.RetirementYes.com Added: Mon, Jul 3, 2006 18:22:12 Category: Retirement Questions

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With an IRA, or Individual Retirement Account, your have several options. To set up a traditional IRA, the following guidelines must be followed:

1. The custodian or trustee of the account should be a financial institution approved by the IRS,
   
   
2. Contributions must be in cash,
   
   
3. There should be a non-forfeitable right to the amount all the time,
   
   
4. The account cannot be used to buy a life insurance,
   
   
5. You must start acceptance of distributions by April 1st of the year following the year in which you reach the age of 70 1/2, and
   
   
6. A specified amount cannot be crossed over as the amount increases every year.

You can get your employer or labor union to help you set up an IRA. Submit all of your requirements to your choice of financial institution and your IRA will be setup.

Also, you have to have your IRA set up in your own name. It should be only you and your beneficiaries who can receive the benefits and payments.

These requirements must also be met:

1. The contract should state that the account cannot be transferred to any person, and
   
   
2. The premiums should be flexible so that if your income changes, so can your payments.

See also: Retirement | Retirement Planning | IRA

About the Author:
Randy Yingger answers frequently asked retirement questions at PrettyGreatAnswers.com.

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