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IRA Selector Tool

Footnote 1 You need to make certain adjustments to your AGI to compute your MAGI if any of the following circumstances apply to you:
  • if you (1) have income from U.S. Savings Bonds that was used for qualified higher education expenses, (2) received employer-paid adoption assistance or (3) have income earned while living abroad, you will need to add back such amounts to your reported AGI if they were treated as non-taxable amounts on your tax return; and
  • if you reported a deduction on your tax return for (1) domestic production activities, (2) interest paid on education loans, or (3) qualified tuition and related expenses, you will need to add back such amounts to your reported AGI to compute your MAGI for purposes of determining your eligibility to deduct contributions to a traditional IRA; or your eligibility to make contributions to a Roth IRA.
Footnote 2 Account application subject to account opening qualification.

Footnote 3 There is a single, 5 year holding period when determining whether earnings can be withdrawn federally tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.

Footnote 4 With inherited IRAs, beneficiaries must begin taking distributions within certain periods specified by the tax laws.

Footnote 5 Dollar amount assumes no other contribution, other than a qualifying rollover contribution, to any other IRA. Please consult your outside tax advisor if your circumstances differ.

Footnote 6 For purposes of calculating the amount of IRA contributions and deductions you are eligible for, we have assumed your yearly compensation to be equal to your MAGI. Please consult your outside tax advisor if your circumstances differ.

Footnote 7 However, any earnings would be subject to tax if not taken in a qualified withdrawal and, if taken prior to attaining age 59 1/2, the earnings would be subject to a 10% early withdrawal additional tax, unless an exception applies.

Footnote 8If you were age 70½ or older as of 12/31/2019, you would be required to take an required minimum distribution ("RMD") 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 1st 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.

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.