Individual Retirement Account

An individually managed provident fund, known as an IRA (Individual Retirement Account) ("IRA" or "Personal Management"), is a financial product that allows you to have full control over the management of investments for your provident funds and study funds. This product serves as an alternative to selecting the standard investment tracks offered by managing companies.

IRA is a platform that enables personalized management tailored to the investor’s preferences and risk tolerance, with the flexibility to update the investment portfolio at a frequency suitable for each individual.

When you choose to invest through an IRA, Meitav Pension and Provident Ltd. ("the Company," "Meitav") provides you with the operational platform (through Meitav’s stock exchange member or one of four banks where an account can be opened: Bank Hapoalim, Bank Leumi, Israel Discount Bank, or Bank Mizrahi-Tefahot), and you manage your funds through it. At Meitav, we offer a variety of trading platforms for managing an IRA account.

The Individually Managed Provident Fund product is not an IRA account as defined by the US tax code.

If a client wishes to invest pension funds under Amendment 190 in non-passive products, they must provide one of the following at the time of opening the fund:

• Receipt of an old-age pension at the minimum pension level (ILS 5,306  gross, as of 2026), or accumulated savings for pension purposes of at least ILS 1,575,882. 
• For IRA funds, the total deposits for each product must not exceed ILS 6,303,528 per client’s ID and provident product (study fund or provident fund). 

No, the only change made is the managing entity and the method of management.

Deposit Details for a Study Fund:

Shekel Transfers: Bank Mizrahi (20), Branch 914, Account 653024

Foreign Currency Transfers: Bank Mizrahi (20), Branch 573, Account 450563

Deposit Details for a Provident Fund:

Shekel Transfers: Bank Mizrahi (20), Branch 914, Account 653016

Foreign Currency Transfers: Bank Mizrahi (20), Branch 573, Account 450598

After making the deposit, you must report it and attach proof of the bank transfer through the following link:

https://dforms.meitav.co.il/?IRADeposit

Study Fund: All existing study funds meet the criteria for personal management. There is a deposit limit of ILS 6,303,528 (as of 2026).

•  Provident Fund:
  • Pension Funds: Limited to passive, index-tracking products (for example, those tracking the TA-35 index), unless there is a minimum pension of at least ILS 5,306 per month (as of 2026) or, alternatively, pension savings meeting the initial threshold of ILS 1,575,882 (as of 2026).
  • Capital Funds: No specific investment restrictions. 
•  Provident Funds for Salaried Employees with a Severance Pay Component: Require a signed employer approval to allocate severance pay funds to an IRA fund or, alternatively, confirmation that Section 14 exists in the employment contract between the member and the employer.
• Amendment 190 Funds: Either through direct deposits to a personally managed fund or by transferring from a fund that underwent Amendment 190 in a standard investment track.
• Beneficiary Funds: Direct transfer from a deceased member’s fund or a fund in the beneficiary’s name.
• Severance Pay Funds: Severance pay funds that have undergone tax accounting.

Yes.

A member who actually receives a minimum pension of at least ILS 5,306 per month or, alternatively, a member with pension assets meeting the initial threshold (approximately ILS 1,575,882 as of 2026).

Until recently, personal management of savings was considered the exclusive domain of professional investment managers. However, in recent years, we have seen a growing trend among the general public to choose the IRA product, including:

• Investors who prefer to personally manage the composition of their investment portfolio.
• Self-employed individuals and salaried employees seeking a fund with numerous advantages as detailed above.
• Savers interested in Amendment 190 to the Income Tax Ordinance.
• Financial advisory offices managing funds for private investors.

In personal management, there are several statutory restrictions and subject to the Supervision of Financial Services (Provident Funds) (Personally Managed Provident Fund) Regulations, 5770-2009, as follows:

• The client’s funds may only be invested in deposits, tradable securities, foreign currency, structured products and units in domestic or foreign funds. 

 The client’s funds may only be invested in approved foreign countries and Israel (countries with an investment rating of at least BBB or members of the OECD).

Investment in tradable securities of a specific corporation may not exceed 10% of the estimated value of the provident fund’s assets (this does not apply to foreign funds, exchange-traded funds, or government bonds of Israel or approved foreign countries).

Similar to other provident funds, an IRA fund includes an Amendment 190 fund, which offers a combination of unique advantages, such as taxation, tax deferral, withdrawal options and more.

Upon transferring funds and/or securities to an IRA provident fund or study fund account, you can start operating the account based on the management method you select – self-management or management by a portfolio manager. Whether you choose self-management or management through a portfolio manager, you can view information about your provident fund or study fund in your personal zone on the Meitav website. The site includes balance confirmations, tax information, annual reports and details of the investment assets based on the latest valuation in the fund.

Self-Managed Investments: Each client actively performs the investment activities (trading) based on their personal discretion.

Management by a Portfolio Manager: Another option available is selecting a licensed portfolio manager acceptable to the company to manage your funds in the IRA fund.

The selected portfolio manager receives a power of attorney from you to view and operate the account and can perform investment activities based on their discretion and tailored to your personal guidelines and needs.

Important: personal management of savings (as an IRA account) cannot be conducted within a pension fund. To switch to an IRA format, you must transfer the funds to a personally managed provident fund. However, during the transfer (partial or full), consider the following:

1. Insurance Entry Age Resets: This affects insurance coverage for men over 40. The survivor’s insurance coverage for a member who joined a pension fund from age 40 decreases based on the new entry age.
2. Monthly Insurance Premium Costs for Survivor Coverage Increase: In the event of death, payments to the widow/widower or orphans are first made from the client’s accumulated balance, and only then from the insurance funds paid by the client. Even if the member is currently single, it’s important to know that when this insurance coverage becomes relevant, they will have to pay more, which will reduce their pension savings.
3. Reset of the 5-Year Qualifying Period for Pre-Existing Medical Conditions in Case of Death: Even if the client has already accumulated five years of deposits, upon transferring the pension fund to a provident fund, the survivor coverage count resets and starts anew. Thus, for the five years following the transfer, a death due to a pre-existing medical condition at the time of transfer will not be covered.
4. If the Entire Balance Is Transferred: There will be no insurance coverage until a new deposit is made. You can provide a partial transfer instruction for 90% of the amount to avoid entering a state of “termination of fund membership.” 

Furthermore, to transfer severance pay funds to personal management, you must present approval from the current employer agreeing to the transfer. If the funds are from a previous employer, you must provide a letter releasing the severance pay funds in your favor.

Yes, beneficiaries can be added through the personal area on the Meitav website.