Thinking of rolling over a 401(k), 403(b), IRA or SEP IRA? Rolling over funds at Merrill offers a convenient way to maintain your retirement plan's tax deferred status while consolidating your retirement assets into one easy-to-manage account. Consider all of your choices and learn if a rollover may be right for you.Footnote ¹

Learn more about Merrill IRAs

See which IRA may best meet your needs.

Features and benefits

Traditional

Contributions may be tax deductible for single tax filers earning less than $75,000 MAGI ($74,000 for 2020) and joint tax filers earning less than $124,000 MAGI ($123,000 for 2020).Footnote ² Earnings may be withdrawn without a 10% additional tax at or after age 59½. If you have taxable accounts to draw from in retirement, you can draw them down and allow your Traditional IRA assets to continue to potentially grow tax-deferred until age 72Footnote ³, after which time required minimum distributions must be taken.

Roth

Contributions are not tax deductible, but qualified withdrawals are federal, and often state, tax free after you reach age 59½ and the account has been open at least 5 years. Contributions—not earnings—can be withdrawn tax free at any time.

Rollover

Multiple 401(k) and 403(b) retirement plans can be consolidated into a single easy-to-manage account, allowing your assets to maintain their tax-deferred status. A Merrill IRA provides access to a full range of investment choices. If you have taxable accounts to draw from in retirement, you can draw them down and allow your Traditional IRA assets to continue to potentially grow tax-deferred until age 72Footnote ³, after which time required minimum distributions must be taken.

Eligibility

Traditional

Anyone who has earned income equal to or greater than their IRA contribution is eligible.Footnote ²

Roth

The eligibility limits are $140,000 MAGI or less for individuals ($139,000 for 2020) and $208,000 MAGI or less for joint filers ($206,000 for 2020).Footnote ²

Rollover

Anyone who has earned income equal to or greater than their IRA contribution is eligible.Footnote ²

FAQs

What is an IRA?

An Individual Retirement Account (IRA) provides a tax-deferred way for you to save for retirement. There are many different types of IRAs but Roth and Traditional IRAs are the most common.

How does an IRA work?

IRAs rely on long-term, tax-deferred compounding to provide your retirement savings the opportunity to grow. When you earn interest, receive a dividend or sell an investment (such as a mutual fund) for a gain, you don't pay taxes that year on the earnings. Instead, all taxes are deferred until you withdraw those earnings in retirement.

Why is an IRA important right now?

In retirement you may need as much as 100% of your current after-tax income. This makes it important to start saving sooner rather than later, and an IRA can help get you started.

What are my investment options?

You can choose from a full-range of investment products, including mutual funds, stocks, bonds and ETFs, as well as bank products like CDs and money market savings.

What are the contribution deadlines?

You can make contributions to an IRA for a given tax year until that year's tax return filing deadline, usually April 15 of the following year. Be sure you understand the applicable contribution limits and what happens if you exceed those limits.

How do I convert a retirement plan to a Roth IRA?

A Roth IRA conversion could help grow your retirement federal, and often state, income tax free. To help you convert to a Merrill Edge Roth IRA, call us 24/7 at 866.460.1282 for one-on-one assistance.

What are my options for converting a 401(k) to an IRA?

You have several choices when it comes to your old 401(k). Typically known as a rollover IRA, you can opt to transfer your money into an IRA. Another option is keeping the current 401(k) with your old employer or transfer it to a new employer plan.Footnote ¹

How many IRAs can I have?

There's no limit to the number of individual retirement accounts (IRAs) you can own.

Learn more:

Traditional IRAs

Roth IRAs

Rollover

Transfer an existing IRA

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.

Find the right IRA

Ready to get started?

Open an account

Or call us 24/7 at 866.460.1282

Footnote

You have choices about what to do with your employer-sponsored retirement plan accounts. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over an employer-sponsored plan from your old job to 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 different types of protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information on rolling over your IRA, 401(k), 403(b) or SEP IRA, visit our rollover page or call a Merrill rollover specialist at 888.637.3343.

Important disclosures

Contribution and compensation limits are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary.

If you were age 70½ or older as of 12/31/2019, you would be required to take a required minimum distribution ("RMD") from your traditional IRA and certain other qualified retirement plans for 2019. Effective 1/1/2020, in accordance with new legislation, the required beginning date for RMDs for individuals who turn age 70½ on or after 1/1/20 is age 72. You may defer your first RMD until April 1 in the year after you turn age 70½ or 72, as applicable, but then you'd be required to take two distributions in that year. Note that coronavirus legislation eliminated RMDs for 2020, including RMDs to beneficiaries of Roth IRAs.

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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").

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Are Not Deposits	Are Not Insured by Any Federal Government Agency	Are Not a Condition to Any Banking Service or Activity

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