How can I put mutual funds into an Individual Retirement Account (IRA)?
Most mutual fund companies have arrangements with a bank or trust company for people who want to put their mutual fund shares into an Individual Retirement Account (IRA). The bank or trust company is considered the “custodian” of the account, and will usually charge a modest $10 or $25 fee for its services. As an alternative, you can open a brokerage account IRA and purchase mutual funds within that. The process is similar to using a broker to buy funds normally, except that a single IRA custodian fee in the range of $25 to $50 will be charged. Some mutual funds offer IRA accounts directly. Whichever method you choose, write a separate check for your contribution. You can usually then deduct the fee on your income tax return, and you ll have that much more money growing tax-deferred inside your Individual Retirement Account.
