Wells Fargo & Co. has teamed up with Intuit Inc. to launch a series of individual retirement accounts that can be opened online when people file tax returns using Quicken TurboTax.
The alliance allows taxpayers to open and fund a Wells Fargo IRA while preparing a return with San Diego-based Intuits TurboTax software.
By opening an account before April 15 filers can reduce their 2001 taxable income by up to $2,000. The amount that can be deferred rises to $3,000 for the 2002 tax year.
Shelley Freeman, executive vice president of Wells Fargo Investment Internet Services, said the agreement lets users take advantage of last-minute tax deductions and get customized information about IRA benefits. Existing customers also get a 20% discount when they buy the software.
This is an exclusive partnership that really gives us an elite corner of the IRA market, Ms. Freeman said. Tax time is when people think about investment.
The agreement, announced Jan. 17, also gives Wells access to TurboTaxs nearly 50 million customers. Wells has five IRAs available through the software.
The integration of this IRA application within TurboTax offers a huge benefit to tax filers by showing them how opening an IRA can improve their tax situation, Ms. Freeman said. The software includes videos, Q&As, and other guidance about how to pay less tax.
In February 2000, San Francisco-based Wells Fargo became the first financial institution to let customers open and fund an IRA online.
TurboTax was the top-selling tax preparation program last year, according to NPD Intellect. The online version, TurboTax for the Web, served 14 million customers last year.
