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Contributions may be tax deductible for single tax filers earning less than $73,000 MAGI ($72,000 for 2017) and joint tax filers earning less than $121,000 MAGI ($119,000 for 2017).² Earnings may be withdrawn without a 10% additional tax at or after age 59½.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.

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 Contributions—not earnings—can be withdrawn tax free at any time.

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 Minimum withdrawals are required starting at age 70½ and generally taxed if withdrawn prior to age 59½.

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

The eligibility limits are $135,000 MAGI or less for individuals ($133,000 for 2017) and $199,000 MAGI or less for joint filers ($196,000 for 2017).²

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

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.

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.

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.

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.

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.

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.

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