IN RETIREMENT

Generate retirement income

You've worked hard toward a comfortable and meaningful retirement. Following some simple guidelines may help to make your retirement income last.
1

Know how you'll generate retirement income

Take a strategic approach to drawing income from your nest egg and look for ways to minimize taxes. Many retirees also choose to work part-time. This additional income can make a difference in stretching your funds.
2

Create a retirement budget

You could live 20 to 30 years in retirement, so budgeting has never been more important. Be especially mindful of medical expenses. Paying for Medicare supplemental insurance out of your own pocket can really add up.
3

When to claim your Social Security benefit

Social Security is an important part of your retirement strategy. Research and consider the most advantageous time to take your benefit. The longer you wait, the more you'll get.1
4

Understand required minimum distributions (RMDs)

Once you reach age 70½, the IRS requires you to withdraw a minimum amount each year from certain IRAs. That amount is called a required minimum distribution, or RMD.

There may be a 50% additional federal tax for missed or insufficient RMDs, so it pays to do a little research and get your RMDs right.
Learn more:
5

Consider rolling over old 401(k)s

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.2
Learn more:

Get up to

when you open and fund a new Merrill Edge investment account or IRA.

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2 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 disclosures

1 This material should be regarded as general information on Social Security considerations and is not intended to provide specific Social Security advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.
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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