Where do I go to & how do I start my Roth /IRA or IRA?

[Guest zoelisbeth]

I know this sounds lame, but I don't know how I begin to open an R/IRA account. Is this something I do at a bank? Or is this like a Savings Bond, something the Government sponsors and I contact them? How does it (my money) earn interest? Is there a fee involved? I want to start, it's long past the time I've begun to save (I'm in my late 40s), but I don't know how or where to begin. Thanks in advance for any guidance you can give me! ..Zoe

PS I've read many of the other replies (mostly by John G, thank you ) but the wrinkle is that I am on LTD, and although I am very lucky to have this, it is not something I can count on, as it is reviewed regularly, and the insurance company is basically in the business to *not* give out money if it can avoid doing so -- therefore I want to take advantage of this while I do get LTD, but with a look to the future where I may have only my SSDI as income if my insurance company does not renew my policy. Thanks again!

[John G]

The first issue you face is if you have "earned income". You mention LTD which sounds like you currently do not work. You can qualify for a ROTH/IRA if your spouse works.

Earned income does not include interest, dividends, gifts, or capital gains.

Perhaps the accountants can confirm if LTD counts... I am assuming it would not.

Lets get the qualification issue settled before we move on to the other issues.

[Guest zoelisbeth]

Hi John!

Thanks for the reply -- I imagine that LTD is earned income because I do pay taxes on it every year -- it's a W-2...and the amound is listed in Box 1: "wages, tips other compensation" and on box 13 it says "3rd party sick pay".

Also, this time, I received a note with a decent explaination from the insurance company (finally) .

Here's a quote from the FAQ that came with the W-2: "Box 13: If the 'Retirement plan' box is checked, special limits may apply to the amount of traditional IRA contributions you may deduct..."

I hope this helps you to help me!!!

Thank you again! ..z

PS -- Thanks in advance to any accountants on line who can verify what I surmised.

PS2 -- no, I am not married so that loop-hole /opportunity won't work for me.