About Us » Frequently Asked Questions

From funding your account to trading futures, we’ve got your questions covered. Find the answers you need here.

    • Learn more about our company and how we can assist you with all of your trading needs.

    • What is optionsXpress?
      optionsXpress is a pioneer in online stock, options and futures brokerage service to the self-directed investor. We were founded by an experienced management team dedicated to providing investors with an innovative, leading-edge trading environment.
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      How long have you been in business?
      We were founded in February of 2000, and we opened our web site on November 22, 2000.
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      Where are you physically located?

      Our main office is at the following address:

      150 S. Wacker, 12th Floor
      Chicago, Illinois 60606
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      How are accounts protected?

      optionsXpress is a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from depreciation in a security’s value. Your optionsXpress accounts are protected by SIPC up to $500,000—including up to $250,000 for cash claims.

      Additionally, on our own initiative and at no additional cost to you, optionsXpress has secured excess SIPC coverage offering your account additional account protection beyond the standard SIPC limits. optionsXpress' excess SIPC policy covers in the aggregate up to $100,000,000 subject to a maximum limit of $24,500,000 per customer, $900,000 of which may be cash.

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      Are the funds in the Deposit Accounts insured?

      Yes. Your funds will be swept into participating Deposit Accounts and eligible for deposit insurance by FDIC up to a total of $250,000 principal and accrued interest per depositor in most insurable capacities (e.g., individual, joint, etc.) when aggregated with all other deposits held in the same insurable capacity at a Bank. For example, funds in the Deposit Accounts at a Bank held by an individual are insured up to $250,000, and funds in the Deposit Accounts at a Bank held jointly by two or more individuals are insured up to $250,000 per joint owner ($500,000 per account).

      For IRAs and certain other self-directed retirement accounts, funds in the Deposit Accounts are eligible for deposit insurance up to $250,000 principal and accrued interest per depositor in the aggregate. For more information, please see our Cash Features.

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      How do I contact optionsXpress during business hours?
      You may call us at 888.280.8020 or 312.629.5455. You may also chat online with customer service or trading staff using our Live Help.
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    • Trade from your computer at home or on the go, and follow your securities in real-time.

    • Do you offer any trading advice?
      No. Our accounts are for self-directed investors. We employ brokers to assist you with technical questions, as well as other general questions relating to strategy and trading. Additionally, our representatives may provide educational assistance, and FREE broker-assisted trades, but they do not provide any trading recommendations.
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      What trading products does optionsXpress offer?
      We offer trading in futures, mutual funds, stocks, equity and index options, ETFs and bonds—all on ONE platform.
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      What types of educational services are available?
      In addition to a full range of FREE curriculum-based tutorials and on-demand webinars, we also offer live webinars and occasional on-site workshops.
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      Can I get streaming quotes?
      Yes. optionsXpress customers have access to unlimited tick-by-tick streaming real-time quotes for equities, options and futures.
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    • Opening an account is easy. Find out all you need to know before you begin.

    • Is there a minimum amount required to open an account?
      We have no minimum deposit required to open an account; however, the account must have enough buying power to pay for a trade before it is placed. Please review your trading strategy and fund the account to the appropriate level. Again, no minimum is required to open a cash account, but a $2,000 minimum is required to maintain a margin account.
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      How do I transfer an account into optionsXpress?
      An Account Transfer Form will need to be completed and returned to us with a copy of the most recent statement showing the title of the account, the account number, and an asset list. A signed account transfer form is required for each account being transferred to us. For more detailed information on transfers, please see the Account Transfer FAQ.
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      Do you open accounts for people outside the U.S.?
      Yes, upon our review and at our discretion we accept unsolicited accounts from non-U.S. residents. Although our account opening process is geared toward opening accounts for persons with a U.S. domestic address, we will review and open foreign accounts depending on the country of residence and at our discretion. Please note that we are a U.S.-based broker. We offer only U.S. exchange traded products and we accept only U.S. currency in our customer accounts.
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      Why do I have to disclose personal information to open an optionsXpress account?

      Due to regulatory requirements and the United States government’s efforts to fight terrorism and fraud, U.S. brokerages have been required to obtain, verify and record information about persons who open accounts and certain individuals related to them, including account signatories (in the case of entity accounts) and persons authorized to trade on behalf of accounts (LTAs).

      For more information please see the Customer Identification Program Notice from FINRA.

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      What are the requirements when I provide a government photo ID?

      All three of the following requirements must be met when providing a photo ID:

      • Valid non-expired government ID
      • Evidencing nationality or residence
      • And bearing a photograph or similar safeguard
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      What is the difference between a cash account and a cash/option account?
      The “Cash Account” does not permit options trading. The “Cash/Options” account will allow options trading, but only fully-paid-for options, like long calls or puts, cash secured puts, spreads, etc. Any IRA that trades options would be a cash/option account.
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      What level of options trading will a customer be approved for?

      Clients will be authorized to trade options after being reviewed based on experience and financial background among other criteria. Accounts will receive one of the following option trading levels:

      Trading Level Basic Definitions
        -1 0 1 2 3 4 5
      Trading Disabled ×            
      Trading Stocks / Bonds / Mutual Funds   × × × × × ×
      Covered Call Writing / Short Stock Sales     × × × × ×
      Buying Calls and Puts / Covered Put Writing       × × × ×
      Debit Spreads         × × ×
      Credit Spreads / Equity Put Writing           × ×
      Naked Equity Call Writing / Naked Index Put & Call Writing             ×
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      How are accounts protected?

      optionsXpress is a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from depreciation in a security’s value. Your optionsXpress accounts are protected by SIPC up to $500,000—including up to $100,000 for cash claims.

      Additionally, on our own initiative and at no additional cost to you, optionsXpress has secured excess SIPC coverage offering your account additional account protection beyond the standard SIPC limits. optionsXpress’ excess SIPC policy covers in the aggregate up to $100,000,000, subject to a maximum limit of $24,500,000 per customer, $900,000 of which may be cash.

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      If I open an account online, do I still need to send in paperwork?
      optionsXpress does not currently have a paper application. The initial account process begins online and will prompt you to print out and sign the application at the end. Please note that optionsXpress may request additional information, such as a photo ID, to set up your account. On October 1st, 2003, new U.S. government regulations came into effect requiring that we verify your identity.
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      Can I fax or email my account paperwork?

      Most of our account documents are accepted via fax. Certain forms may require originals:

      Accounts – General
      Account Overview (Account Application)
      Account Transfer Forms (ACATs)
      Non-ACAT Transfers
      Affidavit of Domicile
      Birth Certificate
      Death Certificate
      Divorce Decree
      Identification Cards (Photo IDs)
      IRS W-8
      IRS W-9
      Letter of Instruction (LOI) & Letter of Authorization (LOA)
      Letters Testamentary
      Margin and/or Option Updates
      Marriage License
      Statements (for Account Transfers)
      Transfer on Death Agreement
      Business – Entity Accounts
      Articles of Incorporation
      Corporate Resolution
      Trust Agreement
      Trust Certification / ERISA
      Cashiering
      Bank Statements
      Letter of Authorization
      Limited Power of Attorney (LTA) & Full Power of Attorney (FPA)
      Stock Power of Attorney
      Verification of Deposit
      Retirements
      5304 – SIMPLE
      5305 – E (for Coverdell Education Savings accounts)
      5305 – SEP
      Coverdell Education Savings
      Designation of Beneficiary
      IRA Distribution Form
      Roll-Over Certification
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      What types of accounts do you offer?
      The three main types of accounts available for trading at optionsXpress are cash accounts, margin accounts, and futures accounts. We also offer multiple types of retirement accounts, including traditional, Roth, SEP and simple IRAs.
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      When will an account be ready for trading?

      An account is ready to trade when the account number and appropriate trading level has been assigned, and funds and/or assets have settled in the account. Domestically, most US persons can qualify for Electronic Signature applications for personal and retirement accounts, meaning they can be opened that same business day. Otherwise, accounts are generally opened within one or two business days of our receipt of the signed new account application documentation.

      It is important to note that while funds from an incoming bank wire, cashier’s check, or bank draft check are made available the next business day after they’ve been deposited, personal checks and ACH deposits are subject to a three business day hold. The cut-off for any deposit is 12:00 PM Eastern. Please see the Transfer Funds FAQ for more information.

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    • We offer quick and easy ways to deposit or withdraw funds from your account.

    • How do I deposit checks into an account at optionsXpress?

      We accept personal checks where the registration on the check is the same as the optionsXpress, Inc. account.

      We accept cashier’s checks where the remitter’s name is pre-printed on the check by issuing bank only. The remitter’s name must be the same as the optionsXpress, Inc. account.

      Please note that we do NOT accept certain forms of deposits including (but not limited to) cash, credit card or line-of-credit checks, starter checks, traveler’s checks, money orders, third-party deposits such as United States Treasury Tax Refund checks, or checks payable in foreign (non-U.S.) currency.

      The name on the check to be deposited must match the registration on the optionsXpress account. We do NOT accept third party deposits (i.e. We do not accept checks payable to optionsXpress from non-account holders or checks where a recipient makes an endorsement over to optionsXpress).

      Please make sure the account name and optionsXpress account number are printed on each check. For an IRA check deposit, please indicate contribution year.

      If your check is for a new account, please attach your signed Account Application and any applicable supporting documents.

      If you already have an account number, Printable Deposits Slips are available (login required).

      Once the check is received by optionsXpress, an e-mail confirmation will be sent with deposit details.

      Certified funds will be available next day. Personal checks are normally available in 3–5 business days. However, deposits may be held up to 10 business days or longer depending on various circumstances.

      Check deposit mailing address:

      optionsXpress, Inc.
      Attn: Cashiering
      P. O. Box 2197
      Chicago, IL 60690-2197

      Delivery by courier service which requires signature or delivery confirmation:

      optionsXpress, Inc.
      Attn: Cashiering
      150 S. Wacker, 12th Floor
      Chicago, Illinois 60606
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      How do I do a wire transfer into an account?

      General Instructions

      Please note before wiring funds, a new account application must be received, processed, and an account number assigned.

      We do NOT accept third-party wires or wires from third-party money transfer services. Wires must be generated from a financial institution at which you have an account where the registration matches to your optionsXpress account.

      Funds may NOT be wired into an IRA account.

      Funds must be in USD ($) only. Applicable instructions, depending on currency and country of initiation, are noted below.

      Funding will generally be available same day after wire receipt.

      Please note the wire instructions cannot be used for ACH transactions.

      Wire Instructions

      Wire Instructions for accounts that clear through optionsXpress, Inc.:

      JPMorgan Chase Bank, NA
      ABA # 021000021
      A/C 707660205 optionsXpress, Inc.
      F/C/T [your name here]
      A/C# [your 8 digit account number]
      Bank Address (wires only—do NOT mail funds)
      1 Chase Manhattan Plaza
      New York, NY 10081
      Swift Code
      CHASUS33
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      How do I establish ACH service for accounts at optionsXpress?

      The ACH set-up process can be initiated by clicking the Establish ACH link on the Transfer Funds page. Once we receive the signed ACH application, we will notify you through a series of e-mails of the steps needed to verify your link. The final email will also supply you with more detailed instructions on how to use the service.

      Once ACH is established, a request to deposit funds can be made on the Transfer Funds page under the Account tab.

      All ACH deposit requests must be received by 3:30pm ET to be processed same business day. All other requests will be processed on the following business day.

      ACH deposits will be available for trading on the third business day after processing.

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      How do I use on-line billpay to deposit funds at optionsXpress?

      Please note before transferring funds, your optionsXpress account application must be received, processed, and an account number assigned.

      You must enroll for On-line Bill Pay at your bank or financial institution. Once you have signed up, you may use On-line Bill Pay to complete electronic funds transfers to optionsXpress. Please note that the bank account registration must match to your optionsXpress account.

      Log into the bank account you wish to make your transfer and input optionsXpress as the Payee and address or zip code if required of 150 S. Wacker, 12th Floor, Chicago, IL 60606. In the Payee account number field, input your optionsXpress account number in the following format 1111-1111. For an IRA contribution, please add the year directly after your account number with no spaces or dashes (ie. 1111-11112009).

      It takes 1-2 business days for funds to be available in your optionsXpress account when you use electronic Bill Pay. Please note your Bank may initiate your first online billpay to a new payee as a check sent through the U.S. postal system. Please allow up to 10 business days for the billpay to reflect in your account.

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      How do I deposit a security certificate into an account?

      To mail a stock certificate for deposit into an account, follow the instructions below:

      1. Sign your name on the back of the certificate exactly as it is spelled on the front of the certificate. All names listed on the certificate must endorse the back. View sample stock certificate.
      2. You will then need to appoint our clearing agent, optionsXpress, Inc., as the attorney to transfer on the back of the certificate, where it states “… I do hereby irrevocably constitute and appoint __________ Attorney to transfer …”
      3. Write the optionsXpress account number under your endorsement. For new accounts, please include your username. Please note: everything else on the certificate should be left blank.

      For added security, we recommend that you send your certificate(s) using a method that can be tracked (e.g. FedEx, UPS, Registered or Certified Mail). Please mail your certificates to:

      optionsXpress, Inc.
      150 S. Wacker, 12th Floor
      Chicago, Illinois 60606
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      How do I withdraw or transfer funds from an account?

      You have several options when withdrawing or transferring funds from optionsXpress.

      By Check
      You can request a check simply by logging into the account and clicking on the Transfer Funds link under the Account tab. From there you will see a Check link below “Withdraw from optionsXpress” where you can select to have a check mailed to the address of record.
      By Wire Transfer
      A wire can be initiated by logging into the account and going to Transfer Funds under the Account tab. Clicking on the Wire link under “Withdraw from optionsXpress” will lead you to the Wire Requests form. All required information will need to be completed.
      Automated Funds Transfer (ACH)
      If you have a U.S. bank account, you may establish a link between an optionsXpress account and a bank. You will need to complete the ACH Application, sign it, and return the original to us. Once we receive your signed ACH Application, we will notify you through a series of e-mails of the steps to verify your link. The final email will also supply you with more detailed instructions on how to use the service.
      Internal Funds Transfers
      These can be requested via the Transfer Funds link under the Account tab between individual and joint accounts with common Tax ID’s. All other internal transfer requests require a Letter of Authorization.
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    • Find out all you need to know about IRAs before you begin.

    • What are the types of IRA accounts that I can open at optionsXpress?
      optionsXpress offers U.S. customers to choose from a Traditional, Rollover, Roth, SEP, SIMPLE or Educational IRA. With the ability to trade options, stocks, bonds and mutual funds.

      Open an Account

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      How do I set up an IRA with optionsXpress?

      To open an IRA. Visit here or click on the "Open Another Account" link at the upper right of your optionsXpress account. The "New Account Application" screen will appear. Under "What Kind of Account", click on the appropriate account entity type.

      • The system will prompt you through the steps to create your account. (Select the specific type of IRA that you want to create)
      • Upon completion, you will be prompted to submit your documents electronically (and if applicable) or to print the forms. A SEP IRA requires form 5305-SEP, a Coverdell IRA will require form 5305-E, and a SIMPLE IRA requires form 5305-SIMPLE Articles I through VII.
      • If you have to print the forms or you choose to print the forms, please be sure to sign the IRA Account Application on the "X CUSTOMER SIGNATURE" line, and sign the IRA Designation of Beneficiary form on the "IRA HOLDER" line.
      • After printing the application, you may fax the application and all required documents to 312-629-5256 to expedite your application.
      Please feel free to contact us at 888-280-8020 should you have any questions regarding this process or if you need further assistance.
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      What is a Traditional IRA?

      A Traditional IRA is an Individual Retirement Account in which the contributions are tax-deductible if eligibility requirements are met. Please consult with your tax advisor as your income, filing status, and other retirement plans may affect your eligibility. Earnings within a Traditional IRA are tax-deferred until withdrawals begin.

      Please read important IRA disclosure information.
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      Who is eligible for a Traditional IRA?

      Anyone, who received taxable compensation during the tax year. (Example: If filing jointly, their spouse.)

      Refer to IRS Pub 590-A for more information at http://www.irs.gov/
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      When can you withdraw from a Traditional IRA?

      You may withdraw funds at any time, however; if you are under the age or 59 ½ a 10% early withdrawal penalty may apply for non-qualified distributions. Eligible distributions may be taxed at the current tax rate. Please consult with your tax advisor prior to taking a distribution.

      Refer to IRS Pub 590-B for more information at http://www.irs.gov/
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      What are the key advantages of a Traditional IRA?
      • Contributions may be tax-deductible if eligibility requirements are met. Please consult with your tax advisor as your income, filing status, and other retirement plans may affect your eligibility.
      • Within your IRA, you are able to trade stocks, ETFs, bonds, mutual funds and options.
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      How do I make a contribution to my Traditional or Roth IRA?

      There are several options available for making your yearly contribution. Detailed below are the acceptable funding methods:

      • ACH Deposit - Deposit via ACH with an established ACH Link. You must specify the contribution year when making the request. To set up an ACH link, please select Establish ACH. ACH Deposit requests must be received by 3:30 PM ET for same day processing.
      • On-Line Billpay - Deposit via on-line billpay. For details how to add optionsXpress as a Payee at your Bank, please refer to the On-line Billpay FAQ. Please note the contribution year must be specified in the account number field by adding the year directly after your optionsXpress account number with no spaces or dashes in between. Any contribution without a year designation will be deposited as current year.
      • Internal Transfer - Retail individual/Joint (Held in IRA Account Holder's Name) to an IRA - Internally transfer a contribution from your Individual or Joint account to your Traditional or Roth IRA with a matching Tax payer I.D. Log into your Individual or Joint account and proceed to the Transfer Funds page. Select Internal Transfer option and enter your request. You must specify the contribution year upon entering. Requests must be received by 12:00 PM ET for same day processing.
      • Personal Check - Send a personal check specifying contribution year on check. Check deposits will be processed as current year contributions if year not specified on check deposit. Please refer to Check FAQ for further guidelines on depositing checks.

      Check deposit mailing address:
      optionsXpress, Inc.
      Attn: Cashiering
      P. O. Box 2197
      Chicago, IL 60690-2197

      Delivery by courier service which requires signature or delivery:
      optionsXpress, Inc.
      Attn: Cashiering
      150 S. Wacker, 12th Floor
      Chicago, Illinois 60606
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      How long does it take to fund my IRA?
      Funds received via check or online bill pay check are held for 3-5 business days, ACH deposits are available (for trading) 3 business days after they are received. Bill pay checks received electronically are available the same day. If you are attempting to send a wire, please notify optionsXpress and let us know how to classify the funds as additional paperwork may be required for proper reporting. Contributions for the prior Tax Year can be made until April 15th of the current. Envelopes must be postmarked by April 15th and the Contribution Year must be designated on the check. Contributions made with no designation will be classified as a current year contribution per the IRS' rules and regulations.
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      Can I make a contribution to my Traditional or Roth IRA from a business account?
      No, contributions must come from a personal account and must carry the same registration/information as the optionsXpress account holder.
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      What is a Roth IRA?

      An individual retirement account that allows a person to make after-tax contributions. In some cases, both earnings within the Roth IRA and withdrawals after age 59 ½ may be tax-free. As with all IRAs, there are specific eligibility and filing status requirements mandated by the IRS. Please consult with your tax advisor regarding your individual filing status.

      Please read important IRA disclosure information.
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      Who is eligible for a Roth IRA?

      Anyone, who received taxable compensation during the tax year. (Example: If filing jointly, their spouse.)

      Refer to IRS Pub 590-B for more info at http://www.irs.gov/
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      When can you withdraw from a Roth IRA?

      You may withdraw funds at any time, however; please keep in mind that the distribution has to meet the IRS' guidelines to qualify for a tax and penalty free distribution. Please consult with your tax advisor on the qualifications for taking such a distribution.

      Refer to IRS Pub 590-B for more info at http://www.irs.gov/
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      What are the key advantages of a Roth IRA?
      • Contribution are not tax-deductible
      • Earnings are tax-free (subject to certain limitations)
      • Distributions: Qualified Withdrawals are tax-free.

      Please consult with your tax advisor prior to taking a distribution.

      Refer to IRS Pub 590-B for more info at http://www.irs.gov/
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      How do I request a conversion to a Roth IRA?

      Beginning in 2010, there is no gross income limit for converting a traditional IRA to a Roth IRA. You may request a partial or full conversion of your retirement account. Please be aware a conversion may be a taxable event in the year the conversion takes place.

      • Both the Traditional and Roth IRA must be held at optionsXpress
      • Complete our system generated distribution form available on the Transfer Funds page under Related Links. Please select Conversion as the Distribution reason and complete form. (Must be logged into the distributing IRA)
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      What is a SEP IRA (Simplified Employee Pension)?
      • SEP IRAs are retirement plans for self-employed people or owners of small companies.
      • SEP IRAs permit employers to make tax deductible contributions on behalf of themselves and their employees without complicated administration and with lower cost.
      Please read important IRA disclosure information.
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      Who is eligible for a SEP IRA?
      • If you are self-employed, you can make contributions based on your earned-income compensation with maximum contribution levels designated by the IRS.
      • If you are an employer, you may start a SEP for your employees.
      • If your employer offers a SEP plan you may participate.
      Refer to IRS Pub 560 for more info at http://www.irs.gov/
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      What are the key advantages of a SEP IRA?
      • Established and funded by self-employed individuals or small business
      • Must be established and funded by the employer's tax filing deadline, including extensions
      • Contributions are limited to 25% of compensation or $53,000, whichever is less.
      • Contributions within the limit is deductible on the employer's business tax return
      • Earnings grow on a tax-deferred basis
      Refer to IRS Pub 560 for more info at http://www.irs.gov/
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      How do I make a contribution to a SEP IRA?

      If you are self-employed and are making contributions based on earned compensation, you may send funds directly to optionsXpress.

      The maximum compensation on which contributions can be based is $260,000 for 2014 and $265,000 for 2015. For self-employed individuals, compensation means earned income.
      Contributions can be made from a personal account or from a business account in the name of the employer.
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      When can you withdraw from a SEP IRA?

      You may withdraw funds at any time, however; if you are under the age of 59 ½ a 10% early withdrawal penalty may apply for non-qualified distributions. Eligible distributions may be taxed at the current tax rate. You may want to consult with your tax advisor prior to taking a distribution.

      Refer to the IRS Pub 560 for more information at http://www.irs.gov/
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      What is a SIMPLE IRA?

      A SIMPLE IRA is a retirement plan that may be established by employers, including self-employed individuals (usually less than 100 employees).

      This type of plan allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.

      Please read important IRA disclosure information.
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      Who is eligible for a SIMPLE IRA?

      If your employer offers a SIMPLE plan you may participate. If you are an employer, you may start a SIMPLE for your employees.

      *NOTE: If you are a participant in another plan under a collective bargaining agreement you may not qualify for a Simple IRA.

      Refer to the IRS Pub 560 for more information at http://www.irs.gov/
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      What are the key advantages of a SIMPLE IRA?

      SIMPLE plans are funded by employer contributions and/or by elective employee salary deferrals without complicated administration and with lower costs.

      Trade Stocks, ETF, bonds, mutual funds and options.

      Refer to the IRS Pub 560 for more information at http://www.irs.gov/
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      When can you withdraw from a SIMPLE IRA?

      You may withdraw funds at any time, however; unlike Traditional and Roth IRAs a Simple IRA has a Two-Year waiting period prior to taking a distributions.

      Please consult your tax advisor prior to taking a distribution from this type of IRA.

      Refer to IRS Pub 560 for more information at http://www.irs.gov/
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      What is a Coverdell Education Savings Account - ESA (Educational IRA)?

      A Coverdell Education Savings Account (ESA) is an account created to assist families in funding educational expenses for Beneficiaries under the age of 18 or special needs . Contributions to a Coverdell Education Savings account are not tax deductible.

      Please read important IRA disclosure information.
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      Who is eligible for a Coverdell Education Savings Account - ESA (Educational IRA)?

      If your child is under the age of 18 or a special needs, you may make a contribution.

      Refer to the IRS site for more information at http://www.irs.gov/
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      What are the Key advantages of a Coverdell Education Savings Account - ESA (Educational IRA)?
      • All earnings accumulate on a tax-deferred basis and can be withdrawn from the account tax-free, when used for qualified education expenses.
      • Can trade stocks, ETF, bonds, mutual funds and options.
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      When can you withdraw from a Coverdell Education Savings Account - ESA (Educational IRA)?

      Distribution may be taken at any time for qualified education expenses. The earnings portion of distributions that are not used for qualified expenses may be subject to ordinary income tax, plus a 10% penalty.

      No penalty exists for withdrawals due to death, disability or scholarship. The balance remaining in the Coverdell ESA must be distributed or transferred to another eligible family member prior to the beneficiary attaining the age of 30.

      ** Please consult with your advisor prior to taking a distribution

      Refer to the IRS site for more information at http://www.irs.gov/
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      What is a Rollover IRA?

      A Rollover IRA is a Traditional IRA that is often used by individuals who have changed jobs or retired and have assets in their employer-sponsored retirement plan, such as a 401(k), 403(b) Defined Benefit Plan etc.

      Please read important IRA disclosure information.
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      Who is eligible for a Rollover IRA?
      Anyone is eligible for a Rollover IRA, who is looking to move their qualified employer retirement plan in to a self-directed IRA.
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      What are the key advantages of a Rollover IRA?
      • Assets may be transferred to an employer plan, if their agreement allows it
      • Contributions may be tax-deductible if eligibility requirements are met. Please consult with your tax advisor as your income, filing status, and other retirement plans may affect your eligibility.
      • Within your IRA, you are able to trade stocks, ETFs, bonds, mutual funds and options.
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      When can you withdraw from a Rollover IRA?
      You may withdraw funds at any time, however; if you are under the age of 59 ½ a 10% early withdrawal penalty may apply for non-qualified distributions. Eligible distributions may be taxed at the current tax rate. Please consult with your tax advisor prior to taking a distribution.
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      Can I roll over an existing 401(K) into an optionsXpress IRA?
      If you are changing jobs or retiring, you can roll a 401k plan (403b, PSP, MPP) into an optionsXpress Traditional or Rollover IRA account. To facilitate the rollover of funds, contact the 401k plan administrator for the distribution paperwork. Your fund administrator will then distribute the funds payable to your optionsXpress IRA. The trustee of the optionsXpress IRA will be Equity Trust Company, but the plan administrator should make funds payable to optionsXpress for the benefit of (FBO) your name and mail it to us. If the check is made payable directly to you, a Rollover Certification form must accompany the check.
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      Can futures be traded in an IRA?
      Futures accounts are limited to accounts coded for margin. Since optionsXpress IRA accounts are prohibited from trading on margin, these accounts are not eligible for futures trading.
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      Where do I mail or fax my application or supplemental documentation to?

      You may fax or mail your completed IRA application and additional paper work to.

      Fax documents to:
      ATTN: New accounts
      312-629-5256

      Mail documents to:
      (Delivery by courier service which requires signature or delivery)
      optionsXpress, Inc.
      Attn: Cashiering
      150 South Wacker, 14th Floor
      Chicago, IL 60606-4111
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      Do you allow equity and index options trading in an optionsXpress IRA?

      Yes, we allow trading of equity and index options in IRAs based on the trading level assigned to an investor. Trading in IRAs includes call buying, put buying, cash-secured put writing, spreads, and covered calls. Please refer to our futures FAQs for questions regarding futures and futures options trading in IRAs.

      Anyone considering trading options in a retirement account may wish to read the CBOE's publication on options trading strategies in IRAs and Keoghs.
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      Do you offer Margin in an IRA account?

      No, as margin is not permitted per the IRS' rules and regulations. However; we do allow for more advanced equity and index option trading based on the trading level assigned to each investor. The following restrictions do apply to all IRA accounts:

      • Cannot borrow funds creating a debit cash balance.
      • Cannot short a stock.
      • Not allowed to sell naked options.
      • Cross margining of stock and options not allowed.
      • Day trading is restricted to start of day buying power.
      • Portfolio Margin is not available for IRA accounts.
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      How long will it to take to transfer an IRA from another firm to optionsXpress?
      Account transfers can take approximately a week and a half once paperwork has been received. However; in some cases they can take 7 to 30 business days should additional documentation be required or based on what is being transferred out.
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      What are the IRA contribution limits for 2015?

      Please note these are maximum contributions dependent on both your modified Adjusted Gross Income and Tax Filing Status.

      2015 Limits Under age 50 Over age 50
      Traditional IRA $5,500 $6,500
      Roth IRA $5,500 $6,500
      Simple IRA $12,500 $15,500
      Sep IRA* Lesser of 25% of compensation or $53,000 for 2015 ($52,000 for 2014)
      Education IRA $2,000  
       
      *Employer contributions only
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      What is my required minimum distribution?
      RMDs are minimum amounts that a retirement plan accountholder must withdraw on an annual basis once the age of 70 ½ is attained. To calculate an RMD, use the December 31st year-end balance for the previous tax year, and use your Life Expectancy Table provided in. Publication 590-B www.irs.gov. (Should you need assistance in calculating your RMD, please feel free to contact our Customer Service Area at 888-280-8020 or visit our Live Help).
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      Do you have IRA calculators available?
      IRA calculators can be accessed through our IRA Trustee Equity Trust. Please contact optionsXpress for further detail on how to access.
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      This information should not be construed as providing individual tax or legal advice. Every investor is different and the best type of retirement account depends on your taxable income, age, family status and meeting IRS eligibility requirements. Please consult with your own tax or financial advisor to help you determine which type of retirement account(s) will work best for you regarding your own individual situation.

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