Types of Accounts

Choose one of Franklin Templeton’s many account types and apply today to open a new account.

  • Traditional IRA

    • Contributions may be tax deductible and earnings accumulate tax deferred.
    • Distributions are generally taxable at your earned income tax rate.
    • A tax of 10% may apply to distributions made before you are age 59½, unless an exception applies.

    Rollover IRA

    • A rollover from a 401(k) or other retirement plan allows you to defer any applicable income tax and avoid additional 10% federal tax on withdrawals taken prior to age 59½.
    • Distributions from retirement plans, such as 401(k), 403(b) and government 457 plans, may be rolled over directly from the plan or within 60 days of receipt of a plan distribution.

    Roth IRA

    • Contributions are not tax deductible, but there is no income tax on qualified withdrawals.
    • Distributions will be tax-free if your account has been open for at least five years and you are 59½ or older (or another exception applies). Otherwise, earnings will be taxed at your earned income tax rate and will be subject to an additional 10% federal tax.

    Roth Conversion IRA

    • It is possible to convert a Traditional IRA—including any contributions and rollover amounts—into a Roth IRA regardless of your income.
    • Conversions will be taxed at your earned income tax rate in the year of the conversion.
  • Ownership Options

    • Individual
    • Individual TOD
    • Joint
    • Joint TOD
    • Gifts or Transfers to a Minor (UGMA/UTMA)
    • Trust
    • Estate
    • Guardian
    • Conservatorship


    Overview of Non-Retirement Accounts

    Gifts or Transfers to a Minor

    • A minor may own securities through the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA). A donor makes an irrevocable gift or transfer pursuant to the relevant act and an appointed custodian manages the account until the minor reaches the age specified under the relevant state’s UGMA/UTMA law. At that time, the custodian, or former minor transfers the account to the minor’s name.

    Transfer on Death (TOD)

    You should consult with your attorney and financial advisor to ensure a TOD beneficiary designation is appropriate for your estate planning needs.

    • You can designate one or more Transfer on Death (TOD) beneficiaries on your sole ownership and joint tenant accounts. The beneficiaries have no ownership interest in the account while the account owner(s) are alive, but the TOD designation may allow your beneficiaries to take ownership upon the death of the owner(s) and eliminate the need for probate proceedings. Account owners may add or remove TOD beneficiaries at any time during their lifetime. The acceptability of a TOD designation is determined by the laws of the owner’s state of residence within the United States.
  • Ownership Options

    • Regular
    • Trust or Custodianship

    Overview of 529 College Savings Plans

    • Designed to help save for college and select trade schools.
    • Features the potential for tax-free growth.
    • Has minimal impact on federal financial aid.
    • Learn more about 529 college saving plans and portfolios.
    • New Jersey residents also have the choice to use the NJBEST College Savings Plan — designed exclusively for New Jersey families.