BUILDING WEALTH

Increasing retirement savings

Now that you've reached your peak earning years, it's time to save and invest more as your income grows. Consider taking that annual bonus or tax refund and putting it towards your retirement.
1

Maximize tax-advantaged retirement plan contributions

Tax-advantaged investments, like a 401(k) or a Traditional IRA, provide your savings and investments the opportunity to grow before taxes are deducted. Because contributions may be pre-tax, these accounts might reduce your income tax burden as well.
With Roth IRAs, contributions are made on an after-tax basis. Qualified distributions of earnings are generally federal and sometimes state income tax free.1

Contribution limits for 2018

  Under age 50 Age 50 and older2
.
Traditional3 or Roth IRA $5,500 $6,500
Maximum contributions    
Deadline for 2018 is 4/15/19.4  
401(k) plans $18,500 $24,500
Maximum employee contributions    
Deadline for 2018 is 12/31/18.4  
.

Traditional or Roth?

Answer a few questions and the IRA Selector Tool will help you find out which IRA may be right for you and how much you can contribute.
2

Boost savings with catch‑up contributions

If you're 50 or older2, you can contribute an additional $6,000 to your 401(k) and $1,000 to your Traditional or Roth IRA. It's one of the fastest ways to make strides toward your retirement savings goal.
3

Changing jobs? Consider your choices

Consolidating your retirement assets into one easy-to-manage account is simple with a Rollover IRA. Consider all of your choices and learn if a Rollover IRA may be right for you.5
Learn more:
4

Rebalance your portfolio

Your investments should keep up with your financial goals and life priorities. Market changes can also affect the value of investments and your exposure to risk.
That's why it's a good idea to consider rebalancing your portfolio regularly, adjusting your allocations to the appropriate risk level.6
Pie chart

Is it time to rebalance?

Find out if your current investment allocations match your target based on your investment preferences.
Calculator

How much will you need to retire?

Estimate how much you'll need and receive an action plan to help you get there.

Get up to

$600
when you open and fund a new Merrill Edge investment account or IRA.
Looking for investment advice and guidance?
Meet with a Financial Solutions Advisor at more than 2,000 select Bank of America financial centers.
Or call us 24/7 at 866.460.1282
5 You have choices for what to do with your employer sponsored retirement plan. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth, roll over to an employer sponsored plan from a prior employer to an employer sponsored plan at your new employer, take a distribution or leave the account where it is. Each choice may offer different investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. Visit www.merrilledge.com/ m/pages/mobile /retirement/rollover-ira-mobile.aspx or call a Merrill Edge rollover specialist at 866.460.1282 for additional information about your choices.

Important risk disclosures

1 Please note, however, that income-based restrictions are still in place regarding how much you can contribute to a Roth IRA. There is a single, 5-year holding period when determining whether earnings can be withdrawn as part of a qualified distribution free of federal (and, in most cases, state) income tax. This period begins January 1 of the year of the first contribution to any Roth IRA account.
2 You are treated as being age 50 or older if you will turn age 50 or older at any point during the calendar year.
3 Contributions to Traditional IRA accounts may be tax deductible. 2018 IRS annual modified gross income restrictions are $63,000-$73,000 for head of household or single filer who participates in an employer retirement plan, and $101,000-$121,000 for married couples who participate in an employer retirement plan.
Generally, married couples filing separately are not entitled to a deduction for contributions to traditional IRAs. However, if you are married and file separately but do not live with your spouse at any time during the year, your maximum deduction is determined as if you were a single filer.
If neither you nor your spouse is covered by an employer retirement plan, the maximum deduction is either $5,500 or $6,500, depending on whether you are age 50 or over.
4 IRA contributions for 2018 can be made through the 2019 tax filing deadline (generally April 15). If April 15 falls on a weekend or holiday, the deadline typically is the next business day.
6 Asset allocation, rebalancing and diversification do not ensure a profit or protect against loss in declining markets.
Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
A direct rollover occurs when you request that a rollover check be made payable directly to the new custodian for the benefit of your individual retirement account (IRA) or employer-sponsored retirement plan. A direct rollover is not subject to current tax or penalties.
An indirect rollover occurs when you request that a rollover check be made payable to you, after which you deposit the money into your IRA or another employer's retirement plan within 60 days. When such a distribution is made by the plan, the plan is required by law to withhold 20% of the taxable amount for prepayment of federal income taxes. If you wish to rollover the entire distribution, you must make up the 20% withholding out of your own funds, or you will be subject to income taxes and possibly early withdrawal penalties on the shortfall. If you fail to complete the rollover within 60 days, all or part of the money distributed to you will be taxable and a 10% additional tax for early withdrawals may apply.
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