optionsXpress » Stocks, Options & Futures

Open an Account

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.

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

You (or, if you file a joint return, your spouse) received taxable compensation during the year.

Age 59 ½ or later. A 10% penalty will apply for non-qualified withdrawals. Eligible withdrawals will be taxed at the current tax rate.

• Contributions are tax-deductible if eligibility requirements are met. Please check with your tax advisor because your income, filing status, and other retirement plans may affect your eligibility.
• Trade stocks, ETFs, bonds, mutual funds and options. To learn about trading futures in an IRA, click here.
• Trade covered calls, cash secured puts, debit spreads, credit spreads, purchase calls/puts, purchase straddles & strangles.

Step 1. Create an optionsXpress account.

Step 2. Fund your account with one of our four funding methods; Check, wire, ACH and online bill pay are the funding options. View more important information about Funding a Traditional IRA.

There are several options available to deposit your yearly contribution each of which is detailed below.

1) 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.

2) 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.

3) 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.

4) 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

A Roth IRA is a retirement account in which initial contributions are subject to taxes but offers the opportunity for federal tax-free growth. Withdrawals in a Roth IRA are tax exempt subject to certain Internal Revenue Service rules. As with all IRAs, there are specific eligibility and filing status requirements mandated by the Internal Revenue Service. Please consult with your own tax advisor regarding your individual situation.

You (or, if you file a joint return, your spouse) received taxable compensation during the year.

All earnings and principal are tax free if rules and regulations are followed. There is no mandatory distribution age.

• Initial contributions are subject to taxes but offers the opportunity for federal tax-free growth.
• Withdrawals in a Roth IRA are tax exempt subject to certain Internal Revenue Service rules.
• Trade stocks, ETF, bonds, mutual funds and options.
• Trade covered calls, cash secured puts, debit spreads, credit spreads, purchase calls/puts, purchase straddles & strangles.
• Withdrawals, subject to certain rules, are tax exempt.

Step 1. Create an optionsXpress account.

Step 2. Fund your account with one of our four funding methods; Check, wire, ACH and online bill pay are the funding options. View more important information about Funding 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 is a taxable event in the year the conversion takes place.

• Please review the IRA calculator page for additional information to consider. Please consult your tax advisor if you have further queries.
• Please ensure both the Traditional and Roth IRA accounts are open with account numbers assigned.
• Please complete an IRA distribution form available on the Transfer Funds page under Related Links. Please select Conversion as the Distribution reason and complete form.

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.

• 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.

Age 59 ½ or later. 10% penalty will apply for non-qualified withdrawals. Eligible withdrawals will be taxed at the current tax rate.

• Available to self-employed people or small business owners.
• Plan defers taxes on investments intended for retirement and withdrawals, subject to certain rules, are tax exempt.
• Trade covered calls, cash secured puts, debit spreads, credit spreads, purchase calls/puts, purchase straddles & strangles

Step 1. Create an optionsXpress account.

Step 2. Print your completed optionsXpress application.

Step 3. A SEP IRA also requires form 5305-SEP.

Step 4. Send us your completed optionsXpress application along with form 5305-SEP. Please visit here for fax and mailing instructions.

Step 5. Fund your account. View more important information about funding an SEP account.

If you are self-employed and are making contributions1 based on earned compensation, you may send funds directly to optionsXpress. Please notify us (in writing or via email) that you file taxes as a business in your own name. If you are not self-employed, your employer may send contributions for you. In this case, please ensure that the employer's name is on the check and that your optionsXpress employment profile is current.

A SIMPLE IRA is designed to make it easier for small business owners (usually less than 100 employees) to offer a tax-advantaged, company-sponsored retirement plan. Plan allows employees to make salary deferral contributions.

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

Age 59 ½ or later. A 10% penalty will apply for non-qualified withdrawals. Eligible withdrawals will be taxed at the current tax rate.

• SIMPLE plans are funded by employer contributions and can be funded by elective employee salary deferrals without complicated administration and with lower costs.
• Trade Stocks, ETF, bonds, mutual funds and options.
• Trade covered calls, cash secured puts, debit spreads, credit spreads, purchase calls/puts, purchase straddles & strangles.

Step 1. Create an optionsXpress account.

Step 2. Print your completed optionsXpress application.

Step 3. A SIMPLE IRA also requires A SIMPLE IRA requires a completed 5304 form. If you are naming a beneficiary, the Designation of Beneficiary form will also be required.

Step 4. Send us your completed optionsXpress application along with form 5304-SIMPLE. Please visit here for fax and mailing instructions.

Step 5. Fund your account. You may fund your account with personal check if Self Employed or Business Check Employer is listed (check must match employer in system).

Step 6. Start trading. Once funds cleared.

A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses. Contributions to a Coverdell Education Savings account are not tax deductible.

If your child is under 18 yrs, you may make tax deferred contributions.

Distribution may begin any time for qualified education expenses and the entire account must be disbursed prior to the beneficiary’s 30th birthday. Any withdrawals after this date will be subject to income taxes and penalty.

• All earnings accumulate on a tax-deferred basis and can be withdrawn from the account tax-free for qualified education expenses.
• Can trade stocks, ETF, bonds, mutual funds and options.
• Trade covered calls, cash secured puts, debit spreads, credit spreads, purchase calls/puts, purchase straddles & strangles.

Step 1. Create an optionsXpress account.

Step 2. Print your completed optionsXpress application.

Step 3. A Coverdell IRA also requires form 5305-E.

Step 4. Send us your completed optionsXpress application along with form 5305-E. LINK. Please visit here for fax and mailing instructions .

Step 5. Fund your account. You may fund your account with check, wire or online bill pay.

Step 6. Start trading. Once funds cleared.

Generally, a Rollover IRA is a tax-free distribution of cash or other assets from one retirement plan to another retirement plan. The contribution to the second retirement plan is called a "Rollover contribution."

• You don't know what to do with your old 401(k) and need a Rollover IRA after a job loss.
• You have multiple 401(k) plans from previous jobs.
• Your previous 401(k) isn't performing to its potential.
• Your previous 401(k) is overly dependent on one company.

Can trade stocks, ETFs, bonds, mutual funds and options.

Step 1. Create an optionsXpress account.

Step 2. Contact your 401(k) plan administrator for the distribution paperwork.

Step 3. Complete the paperwork from your plan administrator.

Step 4. Your plan administrator will then distribute the funds payable to your optionsXpress IRA (your employer may mail the check to you as proof that the plan was paid out).

Step 5. Start trading. Once funds cleared.

Yes. But, if you would like to trade futures in your IRA account, first think carefully and understand the risks. Futures trading is highly speculative and involves the potential for loss. If you have considered the risks, the answer is that futures and futures options can be traded using qualified assets, including those held within an IRA plan. However, in order to trade these products, you will need to establish a relationship with a Custodian who will allow you engage in this activity.

While optionsXpress neither endorses nor recommends any third party provider to act as a custodian for your IRA assets, we are aware of a few companies that permit self-directed trading in certain leveraged financial instruments in IRA accounts. Below is a choice available that you may wish to consider:

Millennium Trust
(800) 258-7878

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

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.

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.

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

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.