As Americans Refocus on Savings, Schwab Provides Ease and Value for Traditional IRA, 401(k) Rollover and Roth IRA Investors

Educational Tools and Resources and Access to Schwab Professionals Offer Guidance for IRA Savings Heading Into Tax Season

Monday, February 22, 2010 8:30 am PST



Public Company Information:

"Highest in Investor Satisfaction with Self-Directed Services"

SAN FRANCISCO--(BUSINESS WIRE)--As Americans enter tax season with a renewed focus on the importance of saving, Charles Schwab is providing a smart and easy way to help minimize taxes while building retirement savings with IRA products that are easy to open and fund and provide value for investors, as well as access to professional guidance. In about 15 minutes, investors can open a traditional or Roth IRA account prior to the April 15 deadline at The Schwab IRA has no account service fees and a low $1,000 minimum to open an account. Schwab also provides clients with a number of online IRA tools and resources, in addition to access to a complimentary consultation with a Schwab professional.

“People are recognizing the opportunity to get back into the market and use the market momentum as a way to refocus on their savings goals, particularly younger investors,” said Rene Kim, Charles Schwab senior vice president. “Because of the compounding savings power in an IRA, money saved now can be much more valuable than money saved later.”

Schwab’s Smart, Easy IRA

A Schwab IRA makes it easy to open a retirement account online in about 15 minutes. Schwab IRAs offer a number of advantages to investors, including no account service fees, low minimum balance requirements, automatic deposits, and access to complimentary consultations to help people through the process of opening their account and matching their portfolio to their needs and risk profile. Schwab IRAs also provide access to a wide range of investment choices that make it easy to invest, including ETFs and hundreds of no-load, no-transaction-fee mutual funds, as well as stocks, bonds, CDs and more. Schwab also offers a wide range of information and resources to help investors find the IRA type that’s right for them, available at or by calling 1-800-548-5576.

Schwab IRA investors also benefit from the firm’s recent reductions in online equity trade commissions designed to provide greater value for investors of all sizes, regardless of the frequency or size of their trades. As of January 19, 2010, Schwab retail investors pay just $8.95 per online equity trade.1

Rollover IRA

The Schwab Rollover IRA offers a number of advantages to investors and 401(k) plan participants, including no account service fees, low minimum balance requirements and automatic deposits. Schwab also makes available complimentary 401(k) Rollover Consultants who can work with an individual’s former plan administrator to request a funds transfer, open a new Rollover IRA over the telephone, help complete all the required paperwork, and arrange an appointment with a Schwab Professional to help select investments once the account is opened and funded. For additional information, Schwab encourages investors to visit or call 1-866-855-9095.

“For people with 401(k) accounts at previous employers or workers leaving their current job, we urge them to investigate their options in approaching and maximizing their retirement savings,” said Kim. “In many cases, rolling an old 401(k) into an IRA can be a strategic move, because it is tax free, there is no penalty, and an IRA provides more investment choices. In addition, a rollover IRA can also keep retirement savings more top of mind. People who leave money in a previous employer’s 401(k) plan often forget the money is even there, which can result in asset allocations falling way off balance based on an individual’s savings objectives and risk tolerance.”

Roth IRA

Because income restrictions for converting to a Roth IRA have been lifted as of January 1, 2010, individuals who make more than $100,000 adjusted gross income can now convert assets from a traditional IRA or 401(k) into a Roth IRA.2 In addition to offering clients live, personalized guidance and analysis regarding Roth IRA conversions, Schwab has tools and online resources including a Roth IRA Conversion Calculator, Roth IRA Conversion Q&As, and key considerations for Roth IRA conversions available on Schwab’s Roth-dedicated site,, to help investors determine if converting to a Roth IRA is right for them.

Additional Information

Schwab encourages investors to visit for a full list of options and further resources, or call 1-800-548-5576 or visit a Schwab branch to take advantage of the remaining window for opening a retirement account prior to the April 15 tax deadline.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

Trades in no-load mutual funds available through Mutual Funds OneSource service (including Schwab Funds) as well as certain other funds, are available without transaction fees when placed through or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Funds are also subject to management fees and expenses.

Charles Schwab & Co., Inc., member SIPC, receives remuneration from fund companies participating in the Mutual Fund OneSource™ service for record keeping and shareholder services and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services.

1 The $8.95 flat commission does not apply to foreign stock transactions, large block transactions requiring special handling, or restricted stock transactions. All broker-assisted and automated phone trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.

2 Changes to Roth IRA conversion income limit rules may not apply in all states. Certain states may impose penalties on conversions above the current income limits. Consult with a tax advisor for more information.

This information is for general information purposes only and is not intended as a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends you consult with a qualified tax advisor, CPA, financial planner or investment manager.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.7 million client brokerage accounts, 1.5 million corporate retirement plan participants, 739,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named "Highest in Investor Satisfaction with Self-Directed Services" by J.D. Power and Associates in 2009, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an equal housing lender), provides deposit and lending services and products, including the Schwab Bank High Yield Investor Saving™ Account. More information is available at (0210-1275)


Charles Schwab
Michael Cianfrocca, 415-667-0344
Pablo Rodriguez, 415-486-3267

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