UBS IRA Review
UBS Roth IRA and Traditional IRA Review. UBS IRA
fees and rates for 2024. Is UBS IRA a good and safe way to invest?
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Opening UBS IRA Account
Opening a UBS IRA is straightforward for existing UBS account holders. Simply contact your Financial Advisor, who will have the necessary forms prepared and mailed to you by a Client Advisor Associate. Your Financial Advisor already has your key information, such as your investment goals, address, Social Security number, and investment experience. After you sign and return the forms, you can make your initial deposit.
Once the initial deposit is made, you can add more funds to the IRA by mailing a check or transferring money from your UBS brokerage account to the IRA.
For clients with irregular income, like those who are self-employed, it can be tedious to call the Financial Advisor each time to deposit a portion of earnings. To simplify this process, you can set up an Electronic Account Transfer between your UBS brokerage account and your IRA, allowing you to add funds online whenever you like.
The Costs of Securities Purchases in UBS IRAs
Equity purchases in a UBS IRA can be costly. For example, buying 200 shares of the ETF XLF (Financial Select Sector SPDR) for $3,500 costs $68, and selling incurs the same fee.
However, mutual fund purchases are more affordable. If you invest $250 or more at once, the fee is $5.25. Purchases of $50 or less have no fee.
First-Class Financial Advisors
Like with a UBS brokerage account, all securities purchases in a UBS IRA must be made by contacting your Financial Advisor (or Client Service Associate). The advisor will discuss how the security fits into your overall investment plan before placing the trade.
If you prefer to make your own trades using a computer or mobile device, UBS may not be the best choice, as they do not offer an online trading option. However, calling your Financial Advisor for each trade can be a personalized experience. UBS positions itself as a Wealth Advisor, and their Financial Advisors provide conservative, sophisticated investment advice, giving the experience of first-class service.
Business IRAs Can Be Complex
If you own a business, you can also open a SIMPLE IRA or SEP IRA with UBS to save more for retirement. Setting up a SIMPLE IRA is straightforward, with the Financial Advisor preparing the forms just like a Traditional IRA. However, funding the SIMPLE IRA can be more challenging, as each deposit requires a call to the Financial Advisor or Client Service Associate to transfer the funds into the IRA. You must also specify whether the deposit is a "Salary Reduction" or an "Employer Contribution."
According to IRS tax rules, a business owner must contribute 2% of each employee's salary annually to a SIMPLE IRA. Employees can contribute up to $12,500 or 100% of their salary (whichever is less). It's important to correctly code these deposits as "Employer Contribution" to meet this requirement. Errors in coding, such as marking an "Employer Contribution" as a "Salary Reduction," can lead to complications, especially for those relying on the full 2% employer contribution.
UBS IRA Annual Fees
UBS charges $75 per year for each IRA account. If you have multiple IRAs, such as a Rollover IRA, SIMPLE IRA, and Traditional IRA, you could pay $225 per year in maintenance fees. However, clients with long-term relationships with their Financial Advisors may be able to have these fees reduced or waived.
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UBS IRA Review Conclusion
If UBS's high fees are a concern, there are many excellent alternatives available from discount brokerage companies like Charles Schwab.
Updated on 7/2/2024.
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