 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 3\\. Open and Fund Your IRA\n--------------------------\nOnce you've chosen your account type and provider, you're ready to open your account and start funding it. Check with your provider about minimum contributions. You may be able to open an account with little to no money and fund it electronically from your bank account or paycheck. Choose one of three ways to fund your account:\n**Make regular automatic contributions.** Calculate how much you'd like to contribute annually and divide it by the number of contributions you plan to make in a year. For example, say you'd like to contribute $6,000 in 2021 and you have 12 remaining pay periods before the April 15, 2022, contribution deadline for the 2021 tax year. You can set up an automatic contribution of $500 every payday to reach your goal—and spread out the timing of your investments. If you'd like to keep going for the 2022 tax year, divide your $6,000 by 24 twice-monthly paychecks. You'll contribute $250 each pay period.\n**You can also make lump-sum contributions.** Do you have a few extra dollars in savings or checking? Have you recently had a windfall—stimulus money, a tax refund, a signing bonus? Transfer any amount—up to your yearly contribution limit—directly into your IRA account. Your provider will send you and the IRS Form 5498 showing the yearly total of your contributions, including lump sums, automatic payments and rollovers.\n**Roll over funds from another IRA or retirement account.** If you have another IRA or a 401(k) or other retirement plan with a previous employer, you can usually arrange an electronic transfer from your old account directly into your new one. Alternatively, make sure you maintain a paper trail that shows where the money came from, how much was withdrawn, and the amount deposited into your new IRA (which should equal the amount withdrawn). Documenting these moves will prevent confusion at tax time. END