JP Morgan Chase IRA Review
J.P. Morgan Investing clients who are trading in taxable accounts may want to consider switching to tax-advantaged accounts. The brokerage firm offers Individual Retirement Accounts (IRAs) with the same financial resources as taxable accounts.
There are only two IRA options available at J.P. Morgan Investing: the traditional and Roth accounts. No other IRA types are available for individuals or small businesses. You can have one of each under a single tax ID number, accessible with a single login.
IRA Options at J.P. Morgan Investing
An IRA with J.P. Morgan Investing can be set up as either a self-directed account or an advisory account. There is no robo-advisor or human-advisory service, although an affiliated company, J.P. Morgan Advisors, offers traditional services with human financial planners. This program includes other IRA types, like the SIMPLE IRA.
Chase IRA Minimums and Fees
J.P. Morgan Investing charges no commissions on trades in any account, whether taxable or tax-advantaged. There is no minimum deposit required and no ongoing fees. However, J.P. Morgan Investing does charge a $75 IRA closeout fee, which many other firms have eliminated.
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Tradable Assets
In a J.P. Morgan Automated Investing account, only exchange-traded funds (ETFs) are available, and only a small selection is used by the company’s software program.
J.P. Morgan Self-Directed Investing customers have access to a wider range of securities, including all ETFs that trade on major U.S. exchanges, as well as stocks, bonds, mutual funds, closed-end funds, and options.
While the list of available mutual funds for self-directed accounts isn’t very large (about 3,000 funds), all of them are no-load, no-transaction-fee products. Moreover, there are exactly 189 lifecycle mutual funds, which have a built-in glide path for retirement planning.
J.P. Morgan Investing’s website provides access to these funds. To find them, click on the Investments tab at the top of the site and select “Find investments” from the drop-down menu. On the next page, click on the link to search for mutual funds. Then, scroll down to the “Target Date” tile.
One of the lifecycle funds on the list is the American Century One Choice 2040 Fund (ticker symbol ARDVX). This fund has a 3-star rating from Morningstar for its overall performance. It has a net expense ratio of 0.84%, a minimum initial purchase amount of $2,500, and pays a dividend once per year in December, with a yield of 4.6% last year.
Opening an IRA at J.P. Morgan Investing
You can open an IRA on either the J.P. Morgan Investing website or mobile app. Both platforms are the same ones used by Chase Bank customers. On the application page, click on "CLICK TO OPEN ACCOUNT". On the next page, you can choose an IRA.
Currently, J.P. Morgan Investing is offering a special promotion for new IRA applications. An account opened with at least $25,000 qualifies for a $125 cash bonus. The IRA must be funded within 45 days of opening, and the balance must be maintained for at least 90 days. This offer expires on January 19, 2024.
Rollover Service
An IRA with J.P. Morgan Investing can accept a rollover from a 401k or another Qualified Retirement Plan from a previous employer. For more details on this process, click on the Pay & transfer tab in the top menu on the website and select “transfer securities.”
On the next page, you’ll find a tile with details on moving an employer-sponsored retirement plan into the IRA with J.P. Morgan Investing. Click on the "learn more" button to access a dedicated page on this topic.
On this page, you’ll find various details about migrating from the employer’s plan, along with a blue Get Started button. Click on this to begin the process of moving the 401k or other plan into the IRA. The J.P. Morgan Investing website will guide you through the steps to make the process as smooth as possible. However, the starting point is with the employer. You’ll need to contact the plan administrator and request that the Qualified Retirement Plan be moved into the IRA with J.P. Morgan Investing.
IRA Transfer
In addition to employer plans, you can transfer an IRA from another brokerage firm into an IRA with J.P. Morgan Investing. This process is simpler because there’s less red tape involved.
To perform an IRA-to-IRA transfer, first open an IRA with J.P. Morgan Investing. Once it’s open, log into the website, go back to the Pay & transfer tab, and select “transfer securities.” This time, choose the option to perform a transfer “from an external financial institution.”
The next page will show a list of potential outgoing brokerage firms, such as Robinhood, Fidelity, and E*Trade. If you don’t see yours, there is a search bar at the top. Follow the instructions, and your old IRA will be moved into your IRA with J.P. Morgan Investing in less than 2 weeks.
Chase IRA Contributions and Withdrawals
To make contributions or withdrawals to or from an IRA with J.P. Morgan Investing, go to the Pay & transfer tab in the top menu and select the link to transfer money. For contributions and withdrawals, the link to transfer securities won’t work.
On the page to transfer money, you can link an external bank account and submit ACH transfers. There is a transfer date field, which allows you to schedule a transfer for the future. Repeat transfers can also be set up.
Chase Retirement Advice
As mentioned earlier, self-directed customers have access to a long list of lifecycle mutual funds.
To add a glide path to an IRA, the account must have at least 10 years remaining before the target date, which is when retirement is expected to begin. Additionally, the account’s risk profile must be set to moderate, growth, or aggressive.
Once J.P. Morgan Automated Investing’s glide path reaches the target date, the software will maintain the final year’s allocation strategy.
Portfolio Builder
IRA customers who opt out of both the automated management option and lifecycle mutual funds can use Portfolio Builder. This digital tool on the broker’s website creates a custom portfolio of ETFs based on various criteria. The account holder is responsible for adjusting asset allocations over time, but the website’s user-friendly tools make this task fairly easy.
Portfolio Builder is free to use, but an account balance of at least $2,500 is required. The tool can be found under the Investments tab on the website.
Retirement Education
The J.P. Morgan Investing website offers a decent amount of resources to help self-directed clients make better financial decisions. These materials are located in the Research section under the Investments tab. Examples of articles we found include:
- Starbucks' Fiscal 2024 Outlook Offers Limited Visibility, Analysts Say
- China Holds $6 Billion Worth Of Crypto, Could 'Kill' Crypto Markets If It Wishes
- Self-Storage Is Big Business
These articles are not specifically focused on retirement planning. For retirement-related materials, visit the JPMorgan Asset Management site (am.jpmorgan.com) and look under the Insights tab. There, you’ll find many retirement tools and resources, some of which require a separate login.
The resources cover many topics, including:
- Roth IRA conversion
- Median annual nursing home cost
- Types of annuities
- Spending during retirement
- Charitable IRA rollover
- Power of attorney
- Asset transfer
Other Financial Services
J.P. Morgan Investing does not offer annuities, long-term care insurance, or other services that retirement planners may be interested in.
Best IRA Accounts
Chase Investment IRA Review Assessment
For its IRA services, J.P. Morgan Investing excels in many areas. It’s especially a great option for Chase bank customers who want to manage most financial accounts under one login.
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Updated on 7/19/2024.
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