ING DIRECT SAVINGS..is it taxable?

Question

Hello
I am debating whether it is more feasible to use IRA or ING Direct. I know with IRA they get tax benefits, is ING taxable?
Also in addition if i open ING savings, can i change my recurring amount to be deposited every now and then?

Answer 1

It is the same thing as a regular savings account, so they will send you the tax form every year.

You can change your deposit amount or elect not to deposit anymore. You can do whatever you want. You can even transfer back some to your regular account.

When I opened my account, I was offered the free 50.00 and I had no problem with taking that out. My husband and I both had it. I'm not sure if they have that right now, but it would be worth it if they do.

Answer 2

ING offers both a savings account (ING Direct) and an IRA.

The interest earned on the savings account would be taxable, assuming it goes over the $10 annual limit set by the IRS.

The taxability of the IRA would depend on whether you opened a traditional, or Roth IRA. The only real difference between them being WHEN you pay the taxes on them. (See the link below for a comparison.)

Answer 3

Santosh is incorrect. Traditional IRAs are taxable only on withdrawals but ING which stands for the International Netherlands Group is like another poster said just like any other savings account and taxable as interest is earned.

And still... financial institutions generally won't send you a 1099 if you make less than $10.00 in interest.

Answer 4

Recurring deposit can be changed anytime. ING direct is not taxable , only on withdrawal it is taxable.