1 You need to make certain adjustments to your AGI to compute your MAGI if any of the following circumstances apply to you:
- if you (1) have income from U.S. Savings Bonds that was used for qualified higher education expenses, (2) received employer-paid adoption assistance or (3) have income earned while living abroad, you will need to add such amounts to your AGI if they were treated as non-taxable amounts on your tax return; and
- if you reported a deduction on your tax return for (1) domestic production activities, (2) interest on education loans, or (3) qualified tuition and related expenses, you will need to add such amounts to your AGI to compute your MAGI.
2 Account application subject to account opening qualification.
3 There is a single, 5 year holding period when determining whether earnings can be withdrawn federally tax-free as part if a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.
4 With inherited IRAs, beneficiaries must begin taking distributions within certain periods specified by the IRS.
Any information presented about tax considerations affecting your financial transactions or arrangements is not intended as tax advice and cannot be relied on to avoid any tax penalties. Neither Merrill Edge™ nor its Financial Solutions Advisors provide tax, accounting or legal advice.
You should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with your personal professional advisor.
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