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.
How many IRAs can I have?