Compare IRAs

Find the IRA to meet your retirement goals

No matter what your retirement strategy, Merrill Edge® offers many types of accounts to help you make the most of your future. With a full range of IRAs to choose from, you can earn tax-deferred income while saving for retirement.
Tab One
Potential to reduce current taxes while enjoying tax-deferred growth potential (contributions may be tax deductible)
Potential to earn tax-free income and greater withdrawal flexibility in retirement (No RMDs required for original account holder)
Consolidate retirement assets with former employers into one, easy-to-manage account. A Rollover IRA allows you to maintain the tax-deferred status of your assets. A Rollover IRA isn't right for everyone. Consider all of your choices and learn if a Rollover IRA may be right for you1
Features & benefits:
  • Contributions and earnings may be withdrawn without a 10% additional tax at or after age 59 ½
  • Contributions may be tax-deductible
  • Withdrawals must be taken the year in which you turn age 70 ½
  • Contributions (not earnings) can be withdrawn tax-free at any time
  • Contributions are not tax-deductible
  • Qualified withdrawals are federally tax-free and may be state tax-free after age 59 ½ and account has been open five years or more
  • No income restrictions required on converting a Traditional IRA to a Roth IRA
  • Access to a full range of investment choices while consolidating multiple 401(k) and 403(b) retirement plans.
  • Requiring minimum withdrawals starting at age 70 ½ and generally taxed if withdrawn prior to age
    59 ½
  • If you move your 401(k) assets into a Rollover IRA, your money will keep its tax-deferred status until you withdrawal it
Who is eligible:
  • Anyone under age 70½ with earned income
  • Contributions may be tax deductible for single tax filers earning less than $71,000 (2015)
  • Contributions may be tax deductible for joint tax filers earning less than $118,000 (2015)
  • Single tax filers = $131,000 (2015)
  • Joint tax filers = $193,000 (2015)
  • Anyone with retirement assets from previous employers or IRAs. Contact a Merrill Edge rollover specialist for details
Are you self-employed or a sole proprietor?

Frequently Asked Questions

What is an IRA?

An Individual Retirement Account (IRA) provides either a tax-deferred or tax-free way for you to save for retirement. There are many different types of IRAs but Roth, Traditional and Rollover 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 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. Instead, all taxes are deferred until you withdraw those earnings in retirement.

Why is an IRA important now?

In retirement you may need as much as 100% of your current after-tax income (take-home pay) minus any amount you are saving for retirement each year. This makes it all the more important to start saving sooner rather than later, and an IRA can help you get started.

What are the ways I can invest in an IRA?

You can choose from investment products such as 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 the tax return filing deadline of the following year.

How do I convert to a Roth IRA?

A Roth IRA Conversion could help grow your retirement federally income tax-free. To help you convert to a Merrill Edge Roth IRA, call us at 888.637.3343 for one-on-one assistance and we'll guide you every step of the way. We're here 24 hours a day, 7 days a week.

Looking for investment advice and guidance?
Pursue your financial goals with advice and guidance from a licensed Merrill Edge Financial Solutions Advisor™—and ask about getting your own Merrill Edge Roadmap® to help you make a plan and stay on track.2
Tab Two
Self-employed, sole proprietorships, partnerships, non-profits and corporate employers who want tax-deferred growth potential plus flexibility on making annual contributions
Small businesses with less than 100 employees who want to enjoy tax-deferred growth and deductions on contributions to individual accounts
Features & benefits:
  • Employer makes all contributions
  • Access to Merrill Lynch E-contribs for Small Business Retirement Accounts for convenient, online contributions
  • Annual custodial fee is waived for life when a SEP IRA is opened with at least $5,000*
  • No program or administrative fees when applying online
  • Custodial fees may apply to a SEP opened with guidance from a Merrill Edge Financial Solutions Advisor for Small Business. See pricing details.
  • Requires minimum withdrawals starting at age 70½ and generally taxed if withdrawn prior to age 59½
  • No IRS Form 5500 filing
  • Employees may make salary deferrals
  • Mandatory employer match contributions of employees' pre-tax salary deferrals; employer either matches or makes a contribution to all eligible employees
  • Greater control over investment choices compared to other retirement plans
  • Access to Merrill Lynch E-contribs for Small Business Retirement Accounts for convenient, online contributions
  • Annual custodial fee is waived for life when SIMPLE IRA is opened with at least $5,000*
  • Requires minimum withdrawals starting at age 70½ and generally subject to 25% additional tax if withdrawal occurs in first two years of participation
  • No IRS Form 5500 filing
Who is eligible:
  • Anyone at least 21 years of age who earns a minimum of $600 in annual income and has worked for the company in at least three of the past five years
  • Earned income of at least $5,000* for any two prior years and expected to earn at least $5,000* in the current year
For other small business retirement solutions, we offer a variety of plans to suit your needs.
* Investments may be subject to commissions, loads, and operating expenses. Fees may also apply for certain transactions, including account closure.

Frequently Asked Questions

SEP IRA
  • Do I have to contribute annually?

    No. A SEP IRA gives you the flexibility to decide each year whether to contribute and at what rate. That could mean contributing more during profitable years and less or nothing at all during less profitable years.
  • Is it difficult to administer a SEP IRA?

    SEP IRAs have little to no paperwork and administration and don't require filing with the IRS. Plus, a Small Business Financial Solutions Advisor can help you get started.
  • Is there investment research I can review?

    Yes. As a Merrill Edge client, you get access to BofA Merrill Lynch Global Research (rated #1 by Institutional Investor3)-as well as research from other industry leaders-to gain investing knowledge and market insights that can help inform your investment strategy.
SIMPLE IRA
  • Is there a mandatory employer match?

    Yes. With a SIMPLE IRA, you must contribute either 2% of compensation for each eligible employee, regardless of participation, or a dollar-for-dollar match of employee salary deferral contributions, capped at 3% of compensation (which may be reduced to as low as 1% in any two years during a 5-year period).
  • What if my business grows beyond 100 employees?

    You may need to consider establishing a small business 401(k) plan when your business grows to more than 100 employees. A Small Business Financial Solutions Advisor can help you consider your options. Please note: If you decide to establish a 401(k) plan, you would stop contributions to the SIMPLE IRA plan and then start the 401(k). Participants that have been in the SIMPLE IRA plan for over two years may roll their SIMPLE IRA assets over to the new 401(k) if it allows for rollovers. Before making any decisions, you should speak with your tax and legal advisor about your situation and the requirements for terminating a plan and establishing a new one.
  • Is it difficult to administer a SIMPLE IRA?

    We have many ways to make managing your retirement plan easier. Our Merrill Lynch E-Contribs for Small Business Retirement Accounts provides small business owners with a convenient web-based solution for making contributions to retirement plan accounts, while the Automated Investment Program provides a systematic way to invest in mutual funds on a schedule based on your needs.

    SIMPLE IRA contributions will be made through your payroll company and you will be required to send an annual notice to your employees. You do not file IRS Form 5500 as you would with a 401(k) plan.
Looking for investment advice and guidance?
Pursue your financial goals with advice and guidance from a licensed Merrill Edge Financial Solutions Advisor™—and ask about getting your own Merrill Edge Roadmap® to help you make a plan and stay on track.2
Ready to get started?
1.888.637.3343
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1 You have choices for what to do with your employer sponsored retirement plan. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth, roll over to an employer sponsored plan from a prior employer to an employer sponsored plan at 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 provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. Visit http://www.merrilledge.com/retirement/rollover-ira or call a Merrill Edge rollover specialist at 1.888.637.3343 for additional information about your choices.

2 Merrill Edge Roadmap® participation requires a Merrill Edge Advisory Center account.

3 Institutional Investor magazine announced BofA Merrill Lynch Global Research as the Top Global Research Firm for 2011, 2012, 2013 and 2014, based on surveys held throughout the year. The magazine creates rankings of the top research analysts in a wide variety of specializations, drawn from the choices of portfolio managers and other investment professionals at more than 1,000 firms. For more information about this award, go to www.institutionalinvestor.com/TopGlobalResearch2014.

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