Skip to main content
 
Back to retirement tools

Merrill® IRA Selector Tool

All investing is subject to risk, including the possible loss of the money you invest. Consider the differing tax treatments for assets at retirement:

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Footnote 3 There is a single, 5 year holding period when determining whether earnings can be withdrawn federally tax-free as part of a qualified distribution from a Roth IRA.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 59½, the earnings would be subject to a 10% early withdrawal additional tax, unless an exception applies.

Footnote 
If 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.
Footnote 
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.
3514992
Connect with us:
LinkenIn
Twitter
YouTube
Connect with us:
LinkenIn
Twitter
YouTube
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").
Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity


Privacy & Security | Advertising practicesAdvertising Practices

© 2021 Bank of America Corporation. All rights reserved.

3258567