Certain restrictions apply.
Individuals who contribute or transfer $5,000 or more in cash or securities to a qualifying Merrill Edge SEP, SIMPLE, Roth, traditional or rollover IRA by December 31, 2013, will have their annual custodial fee of up to $100 waived for the life of the account. Waiver of fees, including account fees, may not be used as an inducement to sell any kind of insurance, including life insurance or annuities. All other fees will still apply. For more detailed information about the fees associated with a Merrill Edge IRA, please refer to your IRA Disclosure & Custodial Agreement. Trust IRA, 529 accounts and Coverdell ESAs do not qualify for the IRA custodial fee waiver status. Contributions or transfers can be made in a lump sum or in several contributions or transfers totaling $5,000 or more to one account. Assets transferred from existing Merrill Lynch accounts and cumulative household account investments totaling $5,000 do not qualify for the fee waiver. Investment value is based solely on the asset valuation at the time of contribution or transfer and is not affected by subsequent market fluctuations. This offer is subject to change and/or termination without advance notice.
2 Any earnings are tax-free if you are at least 59½ or unless you qualify for an exception and the Roth IRA has been funded for at least five years from the year of conversion. There is a 10% additional tax for withdrawals of earnings taken before age 59 ½.
For Traditional IRAs — If you withdraw before age 59 ½ you may be subject to a 10% early withdrawal additional tax unless one of the following exceptions apply: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.
For a withdrawal from a Roth IRA to be federal (and, in most cases, state) income tax free, it must be considered qualified. There is a five-year holding period when determining whether earnings can be withdrawn tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the tax year of the first contribution or the year of conversion to any Roth IRA. The distribution must be made after the five-year holding period, and the individual must have reached age 59 ½, be deceased, disabled or use the funds for a first-time home purchase (lifetime limit of $10,000). There is a 10% additional federal income tax for non-qualified withdrawals of earnings taken before age 59 ½, unless one of the following exceptions apply: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments. A special provision applies for converted assets. If a non-qualified withdrawal is made within five years of the conversion, the earnings withdrawn will be subject to income tax, and the entire withdrawal may be subject to an additional 10% federal income tax unless an exception applies.
Neither Merrill Lynch, Pierce, Fenner & Smith Incorporated nor any of its subsidiaries are tax or legal advisors. We suggest you consult your personal tax or legal advisor before making tax or legal-related investment decisions.