STARTING OUT

Start saving for retirement

Retirement may be decades away, but it's never too early to start investing, even just a small amount at a time.
1

Make the most of your employer match

If your employer offers a retirement plan, such as a 401(k) or 403(b), and will match your contributions, don't leave "free money" on the table.
Even if your employer doesn't provide a match, it's still important to invest as much as you can now, giving your earnings the opportunity to work for you.
2

Consider an individual retirement account (IRA)

You may want to consider an IRA in addition to an employer-sponsored retirement plan or if your employer doesn't offer a plan. An IRA may also offer more investment choices than a 401(k) or 403(b).
Whether you choose a Traditional or Roth IRA will depend largely on your income, tax considerations and age.

Traditional IRA

Enjoy tax-deferred growth and contributions that may be tax-deductible. Because contributions may be pre-tax, these accounts might reduce your income-tax burden as well.

Roth IRA

Contributions are made on an after-tax basis. Future withdrawals are federal income tax free and, in some cases, state tax free if you meet certain criteria.1

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.
3

Max out your 401(k)

If you can, make additional contributions to your 401(k). You can invest up to $18,500 annually for 2018, which could help set you on a good track. You can contribute to an IRA as well.
Calculator

How much will you need to retire?

Estimate how much you'll need and receive help to pursue your goals.
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

Important 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 There is a single, 5-year holding period when determining whether earnings can be withdrawn as part of a qualified distribution free of federal (and, in most cases, state) income tax free from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.
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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