Roth IRA vs. Ing Direct Account-??

I have been trying to deposit money into my dh's Roth IRA account but the credit union makes it almost impossible. I have to get paperwork each and everytime and I would just like to transfer the money each week from my checking account.
I currently have an Ing account, making 4.5%. I was wondering if this would be better to put money into instead of the Roth? Would it make a difference in the end?
Thanks!

P.S. Does anyone have a Roth IRA that is EASY to get access to? Thanks!

Re: Roth IRA vs. Ing Direct Account-??

A Roth IRA is different from a Savings Account. An IRA is an individual retirement account - that you can compare to a 401K. There are penalties for withdrawal, or loans against it, where a savings account, such as ING direct, you have access to it w/out penalty.

A Roth IRA, or any IRA is invested into various portfolios and depending on what portfolios are chosen and how conservative you are w/investing, will have a floating (variable) rate of return. A Savings account will have a generally fixed amount of interest rate but you never lose money. There is a possibility of your vested amount into an IRA decreasing.

Re: Roth IRA vs. Ing Direct Account-??

You can open a Roth IRA anywhere that offers them.

A Roth IRA is different from a regular savings account. You can only take money out of the account at retirement or in other limited circumstances, or you pay a tax penalty. The advantage of a Roth IRA is that you don't pay taxes on the earnings. With a regular bank account, the earnings are taxed each year.

Assuming you're under age 50 and don't exceed the income requirements, you can contribute something like $4,500 to a Roth IRA in 2007. (don't quote me on the $ amount)

Most financial services companies make it easy for you to contribute to a Roth IRA through direct deposit and automatic transfers from your bank account.

The amount of earnings (i.e., ING's 4.5%) you make on your Roth IRA account depend on the performance of the investments you choose.

HTH!

Re: Roth IRA vs. Ing Direct Account-??

I have a Roth IRA but I usually send in checks to deposit money into it. I forget what company I have it through...I can check tonight.

Re: Roth IRA vs. Ing Direct Account-??

I thiink it depends why you are saving as to which account you put it in. Its always smart to max out your Roth though, $4K for you and another 4 for your spouse this year.

ETA: We have ours with USAA. If your current bank is making it difficult I would definitely shop around.

Message edited 4/16/2007 10:02:17 AM.

Re: Roth IRA vs. Ing Direct Account-??

Thanks!