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Traditional IRA

Save and invest for retirement with potential federal income tax‑deferred growth

With a traditional IRA, generally you make contributions to save for retirement and pay taxes on withdrawals later.Footnote 1

Traditional IRA Account Benefits

Make potentially tax-deductible contributionsFootnote 2
Let earnings potentially grow federal income tax‑deferred until withdrawn
Defer federal income taxes until you make withdrawals laterFootnote 1
Invest in stocks, mutual funds, ETFs and more
Question:
What is my contribution limit for a traditional IRA?
 
Answer:
You may be eligible to contribute up to $7,000 per year ($8,000 if you are 50 or older)Footnote 2

What's a key difference between a traditional IRA and a Roth IRA?

With a traditional IRA, your contributions may be tax deductible. Federal income taxes are deferred until you make withdrawals. With a Roth IRA, you always contribute after-tax dollars and make potentially tax-free withdrawals in retirement.Footnote 3
Select to Learn more about all IRAs available at Merrill

Find out if your savings are on track for retirement

Our Personal Retirement Calculator can help you estimate how much you'II realistically need to retire and whether or not you're on track for achieving that goal.
Select to Try our Personal Retirement Calculator

Which retirement account is right for you?

Compare the features of retirement accounts available at Merrill, find out which ones you're eligible for and learn about details like contribution limits and potential tax advantages.

Get started with Merrill Guided Investing and pay $0 in program fees for 6 months.

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Discover your investment choices

Find the investments that work for your portfolio, whether you're interested in trading stocks, ETFs, mutual funds or fixed income investments.
Merrill offers transparent pricing for trades, account services and investment advisory programs.
Select to Learn more about pricing at Merrill

Ready to get started?

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Frequently Asked Questions

Footnote asterisk 
Other fees may apply. Free and $0 means there is no commission charged for these trades. $0 option trades are subject to a $0.65 per-contract fee. Sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs. To learn more about Merrill pricing, visit our Pricing page.
Footnote 
The required beginning date for RMDs is age 73 You may defer your first RMD until April 1st in the year after you turn age 73, but then you'd be required to take two distributions in that year. Failure to take all or part of an RMD may result in up to a 25% additional tax applicable to the amount of the RMD not withdrawn. Consult your tax advisor for more information on your personal circumstances.
Footnote 
Contribution and compensation limits are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary.
Footnote 3 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.

Footnote 
Merrill waives its commissions for all online stock, ETF and option trades placed in a Merrill Edge® Self-Directed brokerage account. Brokerage fees associated with, but not limited to, margin transactions, special stock registration/gifting, account transfer and processing and termination apply. $0 option trades are subject to a $0.65 per-contract fee. Other fees and restrictions may apply. Pricing is subject to change without advance notice.

For broker-assisted trades through Merrill Edge, you will be charged a fee equal to the lower of $29.95 or 5.00% of the principal amount of the transaction. Further, there are indirect fees, such as annual management and other similar fees, that are charged by the manager or sponsor of an exchange-traded fund and of a closed-end fund, as disclosed in the product's prospectus.
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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


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