Traditional IRA

Maximize your earnings potential

Open a Merrill Edge® Traditional IRA today and if you qualify for tax-deductible contributions, you may have the opportunity to lower your current tax bill — with no minimum balance. See all pricing and fees.
May be a good move for...
  • Reducing your current taxes
  • Tax-deferred growth potential
  • Investors under age 70½ with earned income
  • Single tax filers earning less than $71,000 (2016), $72,000 (2017)
  • Joint tax filers earning less than $118,000 (2016), $119,000 (2017)
 
Tab One
Open and fund your IRA by April 18
It’s not too late
Open and fund your IRA by April 18

Simplify investing for retirement

Merrill Edge is a streamlined investment service that gives you access to the investment insights of Merrill Lynch with the convenience of Bank of America banking. We'll help you pursue your goals with easy-to-use tools, independent research and simple flat-rate pricing.
 
 
Did you know?
If you contribute to an employer-sponsored plan, like a 401(k) or 403(b), you may still be eligible for a Traditional IRA.
Get help choosing the right IRA
Help when you need it
See if a Roth or Traditional IRA may be right for you. Find the right IRA
Explore and compare the differences between Roth and Traditional IRAs. Compare IRAs
Transfer an existing IRA to Merrill Edge. Learn more
Looking for one-on-one advice?
Meet with a licensed Merrill Edge Financial Solutions Advisor™ in person or on the phone, who will help you pursue your financial goals and plan for what matters most to you.
Tab Two

Why a Traditional IRA might be right for you

What are the advantages of a Traditional IRA?

  • Unlike a Roth IRA, the original contributions you make to your account may be tax-deductible and your account's earnings are tax deferred—so you'll have more to invest, maximizing your potential earnings return.
  • When you retire, withdrawals are taxed as regular income. If your original contributions were not tax-deductible, then they can be withdrawn federally tax free (state taxes may apply).
  • If you withdraw either your original contribution or earnings before you are age 59½, then you may also be subject to a 10% additional tax.

Am I eligible for a Traditional IRA?

  • Anyone under age 70½ who has earned income equal to or greater than their IRA contribution is eligible
  • If you contribute to an employer-sponsored plan like a 401(k) or 403(b), you are still eligible to open a Traditional IRA as long as you meet the eligibility requirements above
  • If you have no earned income but your spouse earns enough income to cover your contribution as well as their own, you can still make contributions to your IRA

What are the contributions limits and tax deductibility?

    i>If you are under age 50, you can contribute up to $5,500 for 2016 and 2017. For each year during which you're age 50 or older, you can make an additional $1,000 catch up contribution. Contributions must be made prior to each year's tax return deadline for the corresponding year—typically April 15th. Get details on IRA tax deductibility limits for 2016 and 2017.

What investment choices will I have?

  • At Merrill Edge, you'll have access to a full range of investment choices. Select from a wide array of stocks, bonds, options, ETFS, well-known mutual funds and managed portfolios.
  • You may also consider investing in a Money Market IRA or Featured CD IRA offered through Bank of America, N.A.

Are there any fees associated with a Traditional IRA?

  • Your Merrill Edge Traditional IRA has no minimum balance requirement. Additional transaction, service or investment fees may apply. See pricing for details.

How do I open an IRA?

  • It takes just minutes to open your account online. Then, you can quickly fund your new Merrill Edge Traditional IRA and start investing with help from a variety of free resources. Visit the Getting Started tab for details.

Looking for one-on-one advice?
Meet with a licensed Merrill Edge Financial Solutions Advisor™ in person or on the phone, who will help you pursue your financial goals and plan for what matters most to you.
Tab Three

Three ways to get started

1
Open your account
It takes just minutes to open your account online. Here's what you'll need.
If you need help, give us call at 1.888.637.3343—24 hours a day, 7 days a week.
 
2
Fund your account
Fund your account instantly in real time from your eligible linked Bank of America bank account, and also by linking to an account at another financial institution. Or, transfer funds to your account by check, by wire transfer, or by transferring or rolling over an existing account.1 Learn how to fund your account.
 
3
Start investing
Create an investment strategy
Become a smarter investor with help from our Financial Learning Center. Here you'll learn how to make a strategy and design a balanced portfolio aligned to your investing goals.
Find the right investments
Start with BofA Merrill Lynch US 1 List, Merrill Edge Select® Funds and Merrill Edge Select® ETFs. Then, narrow your investment choices with powerful screening tools and make informed investment decisions with access to free independent research.
Manage your portfolio
Access your new Merrill Edge investment account anytime, anywhere—online, on your mobile device and at thousands of Bank of America ATMs.
 
Help when you need it
See if a Roth or Traditional IRA may be right for you. Find the right IRA
Explore and compare the differences between Roth and Traditional IRAs. Compare IRAs
Looking for one-on-one advice?
Meet with a licensed Merrill Edge Financial Solutions Advisor™ in person or on the phone, who will help you pursue your financial goals and plan for what matters most to you.
Tab four

Simple flat-rate pricing

Merrill Edge offers simple, flat-rate pricing of $6.952 per unlimited online equity and ETF trades—that's lower standard pricing than Fidelity, TD Ameritrade and E*TRADE.3 Learn how you can qualify for $0 trades.4 See fee details.
 
Retirement account fees
Annual account fee
$0
Minimum initial funding requirement
$0
Additional services
Additional transaction, service and
investment fees.
Additional transaction and management fees

2In addition to your stocks or ETF commissions, sell orders may be subject to a transaction fee (of between $0.01 to $0.03 per $1,000 of principal). The Securities and Exchange Commission imposes this assessment on the financial services industry to cover the U.S. Government's costs of regulating the security markets and security professionals. If applicable, this fee appears under "Transaction Fee" on a Trade Confirmation. There are also fees associated with investing in ETFs. Read the Expenses and Charges sections of the prospectus to find out what they are. Contact us to obtain a prospectus. A traditional share liquidation fee of 10% of fractional share proceeds may apply.
Looking for one-on-one advice?
Meet with a licensed Merrill Edge Financial Solutions Advisor™ in person or on the phone, who will help you pursue your financial goals and plan for what matters most to you.
Ready to get started?
888.637.3343
Call 24 hours a day, 7 days a week
Other ways to invest
Merrill Edge Guided Investing
Experience online investing enhanced with professional portfolio
management at a low cost.
Invest with
an advisor
Receive one-on-one advice from a licensed Merrill Edge Financial Solutions Advisor™.
600 dollar IRA offer
Get up to $600 when you enroll, open and fund a new Merrill Edge® investment account or IRA.
How to qualify
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.

3 Fidelity's standard online price is $7.95 per equity or ETF trade (excluding certain iShares and Fidelity ETFs offered commission-free). Schwab's standard online price is $6.95 per equity or ETF trade (excluding ETFs available through Schwab ETF OneSource™ when placed in a Schwab account that are available commission-free). E*TRADE's standard online price for equity, ETF or option trade is $9.99, $7.99 for customers who trade at least 150 times per quarter, $6.99 for customers who trade 1,500+ times per quarter. TD Ameritrade's standard online price is $9.99 per equity or ETF trade. Note: Competitive comparison pricing information as of 02/02/2017 excludes special promotional offerings and sales of fractional shares.

4 $0 trades are only available with an individual or joint Merrill Edge self-directed brokerage account. When placing a trade, Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) determines whether you meet the balance or relationship requirements to qualify that trade for the $0 waiver. To determine the number of qualifying trades, MLPF&S adds the qualifying trades in your individual accounts and joint accounts. Commission fees apply when qualification requirements are not met, or when you exceed the number of qualifying trades a month.

Brokerage fees associated with, but not limited to, margin transactions, option trading, special stock registration/gifting, account transfer and processing, research request and termination apply.

a) Commissions are waived for 30 online equity trades each month including stock and exchange traded funds (ETFs) on behalf of MLPF&S, for customers who meet any one of the following criteria:
i) Combined total of $25,000 or more in your deposit accounts at Bank of America, N.A. MLPF&S adds the average collected balances in your deposit accounts as of the prior month to the balances in your bank CD and IRAs as of the prior business day. Bank deposit accounts with the same Social Security number (SSN) as the SSN(s) on the self-directed brokerage account are systematically included in the balance determination. Standard deposit account fees apply.
ii) Or combined balance of $25,000 or more in cash balances in one or more of the following sweep options in your Merrill Edge self-directed account(s) as of the prior business day:

- Bank Deposit Accounts sweep option with your Cash Management Account® (CMA®)
- Retirement Assets Savings Program sweep with your IRA
iii) Or Client of U.S. Trust
iv) Or Client of Preferred Rewards Platinum
b) Commissions are waived for 100 online equity trades each month including stock and ETFs on behalf of MLPF&S, for customers who meet any one of the following criteria:
i) A Client of Preferred Rewards Platinum Honors
ii) Or Client of Banking Rewards Wealth Management U.S. Trust

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

This offer does not apply to Business/Corporate Accounts, Investment Club Accounts, Partnership Accounts and certain fiduciary accounts held at MLPF&S. Other fees and restrictions may apply. Relationship requirements and pricing are subject to change and/or termination without advance notice. To learn about additional ways to qualify for $0 trades, call 1.888.MER.EDGE (1.888.637.3343).

You are eligible to enroll in the Preferred Rewards program if you have an active, eligible Bank of America personal checking account and maintain a three month average combined balance in your qualifying Bank of America deposit accounts and/or your qualifying Merrill Edge and Merrill Lynch investment accounts of at least $20,000 for the Gold tier, $50,000 for the Platinum tier, or $100,000 for the Platinum Honors tier. SafeBalance Banking accounts do not count towards the account or balance requirements, and do not receive the fee waivers and other benefits of the program. Certain benefits are also available without enrolling in Preferred Rewards if you satisfy balance and other requirements. For details on Employee qualification requirements, please visit the Employee Banking & Investments website. The Preferred Rewards Gold tier does not include the $0 online equity and ETF trades via Merrill Edge®, a benefit that is currently available at the Platinum and Platinum Honors tiers of Preferred Rewards. Merrill Lynch Wealth Management clients with greater than $250,000 in assets with Bank of America and Merrill Lynch are eligible for additional banking benefits. Please speak with your Merrill Lynch financial advisor for details.

Equity securities sold through Merrill Edge self-directed investing are subject to stock market fluctuations that occur in response to economic and business developments.

Investing in Mutual Funds and ETFs involve certain risk. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa.

A Brokered Certificate of Deposit is different than a bank Certificate of Deposit. It is sold for a bank by a broker while a Certificate of Deposit can be purchased directly from a bank. Brokered CDs may offer higher rates of return, but their value may fluctuate with changing interest rates. Banking products are provided by Bank of America, N.A. and affiliated banks. Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

The offering of cash rewards, free trades, waiver of fees (including account fees), and/or any other thing of value may not be used as an inducement to sell any kind of insurance, including life insurance or annuities.

There is a single, 5-year holding period when determining whether earnings can be withdrawn federal (and, in most cases, state) income 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.

Fees and expenses are subject to change. Please note that other fees and expenses may apply, including early withdrawal penalties and trustee transfer fees. For Merrill Lynch, Pierce, Fenner & Smith Incorporated's standard brokerage fees, please see the Miscellaneous Fees schedule. For Bank of America N.A.'s fees, see your Personal Schedule of Fees.

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