|Form Name & Function
IRA Application - Traditional or Roth IRA (Contribution)
- Open a Dodge & Cox Funds IRA and fund with a contribution. Please note, this type of account can be opened online.
IRA Application − Transfer of Assets , Rollover, or SEP IRA
- Open a Dodge & Cox Funds IRA and request a transfer of assets from a non-Dodge & Cox Funds traditional or Roth IRA
- Open a Dodge & Cox Funds IRA and request a rollover from your employer-sponsored retirement plan
- Open a Dodge & Cox Funds SEP IRA
Notice to Investors Residing Outside the United States
Shares of the Dodge & Cox Funds are offered for sale only in the United States and are registered for sale in all states. While you may obtain prospectuses and other information about our Funds at this website, our Funds are not registered for sale in any other country. We will only mail prospectuses and other information to U.S. addresses, and we will only establish accounts with a U.S. address.
Below are some commonly asked questions regarding IRAs.
An Individual Retirement Account (IRA) is a custodial
account created to provide individuals a simple
tax-advantaged way to accumulate funds for retirement. There are two basic types of IRAs — traditional and Roth.
What is the contribution limit?
The maximum annual combined contribution you
may make to traditional and Roth IRAs is $5,500 for
2013. The $5,500 limit is subject to annual increases for
inflation in $500 increments. If you are age 50 or older
during the year, the maximum annual combined
contribution you may make to traditional and Roth IRAs
is increased to $6,500 for 2013. Thereafter, the maximum
contribution is $1,000 more than the maximum
contribution for the year if you were under age 50.
What is the difference between a traditional IRA and a Roth IRA?
With a traditional IRA, you may contribute up to the
maximum contribution limit for the year, for each year
until the year you reach age 70½, and you may be able to
deduct the contribution from taxable income, thereby
reducing your current income taxes. Taxes on investment
earnings are deferred until the money is withdrawn.
Withdrawals are taxed as additional ordinary income
when received. Nondeductible contributions, if any, are
withdrawn tax free. Withdrawals before age 59½ are
assessed a 10% premature withdrawal penalty in addition
to income tax, unless an exception applies. You are
required to begin taking withdrawals from your traditional
IRA after you reach age 70½.
With a Roth IRA, the contribution limits are
essentially the same as for a traditional IRA, but
there isno tax deduction for contributions. All
earnings in the account are tax free. Most
importantly, you do not pay income taxes on
qualified withdrawals from your Roth IRA, if certain
requirements are met. Additionally, unlike a
traditional IRA, there is no prohibition on making
contributions to Roth IRAs after reaching age 70½,
and there is no requirement that you begin making
minimum withdrawals at that age.
Which is better, a Roth IRA or a traditional IRA?
This depends upon your
individual situation. A contribution to a
traditional IRA may be tax deductible, while a
contribution to a Roth IRA is not deductible. Also,
the benefits of a traditional IRA versus Roth IRA
may depend upon a number of other factors including:
your current income tax bracket vs. your expected
income tax bracket when you make withdrawals from
your IRA, whether you expect to be able to make
nontaxable withdrawals from your Roth IRA, how long
you expect to leave your contributions in the IRA,
and how much you expect the IRA to earn in the
We suggest that you consult with a financial or tax
advisor to determine whether you should establish a
traditional or Roth IRA or convert any or all of an
existing traditional IRA to a Roth IRA. Your tax
advisor can also advise you as to the state tax
consequences that may affect whether a traditional
or Roth IRA is better for you.
What are the eligibility requirements for a traditional IRA?
You are eligible to establish and contribute to a traditional IRA for a year if:
- You received compensation (or earned income, if you are self-employed) during the year for personal services you rendered. If you received taxable alimony, this is treated like compensation for IRA purposes. Compensation does not include amounts received as a pension or annuity, amounts received as deferred compensation, amounts derived from or received as earnings or profits from property, such as interest, dividends and rent, or any amount not includable in gross income.
- You did not reach age 70½ during the year.
What are the eligibility requirements for Roth IRA?
You are eligible to establish and contribute to a Roth IRA for a given year if:
- You received compensation (or earned income, if you are self-employed), subject to certain income limits, during the year for personal services you rendered. If you received taxable alimony, this is considered compensation for IRA purposes. Compensation does not include amounts received as a pension or annuity, amounts received as deferred compensation, amounts derived from or received as earnings or profits from property, such as interest, dividends and rent, or any amount not includable in gross income.
- In contrast to a traditional IRA, you may continue making contributions to a Roth IRA after you reach age 70½.
Rules and Tax Matters
How are my IRA contributions invested?
You control the investment and reinvestment of
contributions to your Dodge & Cox Funds — State
Street Bank and Trust Company IRA. Investments must
be in one or more of the Dodge & Cox Funds. You
direct the investment of your IRA by giving your
investment instructions to the Transfer Agent for the
Fund(s). Since you control the investment of your IRA,
you are responsible for any losses; neither the Funds, the
Custodian, nor the Transfer Agent has any
responsibility for any loss or diminution in value
occasioned by your exercise of investment control.
Transactions for your IRA will generally be at the
applicable net asset value per share for shares of the
Fund(s) involved next established after the Transfer
Agent receives proper investment instructions from you.
You should consult the current prospectus for the
Dodge & Cox Funds for additional information.
Before making any investment, read carefully the
current prospectus for any Fund you are considering as an
investment for your traditional or Roth IRA. The
prospectus will contain information about the Fund’s
investment objectives and policies, as well as minimum
initial investment requirements and any other charges.
Because you control the selection of investments for
your IRA and because mutual fund shares fluctuate in
value, the growth in value of your IRA cannot be
guaranteed or projected.
What IRA reports does the Custodian issue?
The Custodian will report all withdrawals to the IRS and
the recipient on the appropriate form. For reporting
purposes, a direct transfer of assets to a successor custodian
or trustee is not considered a withdrawal (except for a
direct transfer that effects a conversion of a traditional
IRA to a Roth IRA, or a recharacterization of a Roth IRA
back to a traditional IRA).
The Custodian will report to the IRS the year-end
value of your account and the amount of any rollover
(including conversions from a traditional IRA to a Roth
IRA) or regular contributions made during a calendar
year, as well as the tax year for which a contribution is
Unless the Custodian receives an indication from
you to the contrary, it will treat an amount received as a
contribution for the tax year in which it is received. It is
important that a contribution made between January 1
and April 15 for the prior year be clearly designated
Are the earnings on my traditional IRA taxed?
Any earnings on the investments held in your traditional
IRA are generally exempt from federal income taxes and
will not be taxed until withdrawn by you, unless the
tax-exempt status of your traditional IRA is revoked.
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