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Compare IRAs

With a full range of IRAs to choose from, you can save for retirement while receiving tax benefits.

Traditional IRA

May reduce current taxes while enjoying tax-deferred growth.
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Roth IRA

Offers the potential to earn tax-free income and greater withdrawal flexibility in retirement.
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Rollover IRA

Consolidate retirement assets with former employers into one easy-to-manage account, allowing your assets to maintain their tax-deferred status. A Rollover IRA isn't right for everyone. Consider all of your choices and learn if a Rollover IRA may be right for you.Footnote 1
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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($74,000 for 2019) and joint tax filers earning less than $124,000 MAGI ($123,000 for 2019).Footnote 2 Earnings may be withdrawn without a 10% additional tax at or after age 59½. Withdrawals must be taken beginning the year in which you turn age 70½.

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 Contributions—not earnings—can be withdrawn tax free at any time.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 Rollover IRA provides access to a full range of investment choices. Minimum withdrawals are required starting at age 70½ and generally taxed if withdrawn prior to age 59½.Footnote 1

Eligibility

Traditional

Anyone under age 70½ with earned income is eligible to open and contribute to a Traditional IRA.

Roth

The eligibility limits are $139,000 MAGI or less for individuals ($137,000 for 2019) and $206,000 MAGI or less for joint filers ($203,000 for 2019).Footnote 2

Rollover

Anyone with retirement assets from previous employers or IRAs is eligible to roll over those assets to a new IRA.Footnote 1

FAQs

What is an IRA?

An Individual Retirement Account provides either a tax-deferred or tax-free way for you to save for retirement. There are many types of IRAs but Roth, Traditional and Rollover IRAs are the most common.

How does an IRA work?

IRAs rely on long-term, tax-advantaged compounding to provide your retirement savings the opportunity to grow more quickly than in a taxable account. 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.

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 IRAs
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.
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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. Visit our Rollover IRA page or call a Merrill rollover specialist at 888.637.3343 for more information about your choices.

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.
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