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Rollover IRA

Q: Am I eligible to rollover funds?

Generally you are eligible if you've left your retirement assets with a former employer. Contact your plan sponsor for details.

Q: What investment choices will I have?

At Merrill, 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.

Q: What's the difference between a direct rollover and an indirect rollover?

With a direct rollover, the check from your employer sponsored plan is made out to the financial institution where you opened your IRA, for the benefit of you. Since this money is deposited directly from the 401(k) or other qualified retirement plan to the IRA, no taxes are withheld. With an indirect rollover, the check is made payable to you. Your former employer withholds a mandatory 20% for taxes. You have 60 days to deposit these funds into an IRA, and must make up the 20% yourself, otherwise the 20% withheld will be considered a taxable distribution and only 80% will have the potential to continue to grow taxfree or tax-deferred. In addition, if you are under age 59 1/2 you may be subject to a 10% additional federal tax, unless one of several exceptions applies.

Q: How do I open my IRA?

It takes just minutes to open your account online. Here's what you'll need: Social Security number and date of birth A valid mailing and email address Employment information (such as annual income and household net worth) Names and dates of birth for any beneficiaries Have questions? Call Merrill at 888.637.3343.

Explore rolling over your retirement assets at MerrillFootnote ¹

Consider all your choices and learn if a rollover is right for you

Open an account and roll over your retirement assets

Consolidate your assets plus access tools and investment choices available at Merrill by rolling over your retirement account.

Features of a Rollover

Enjoy potential tax-deferred growth

See all your accounts through a single login

Make contributions to your IRA if eligible

Access investment choices available at Merrill

Question:

Can I roll over or consolidate an existing IRA?

Answer:

Yes, an indirect rollover occurs when you withdraw assets from an IRA and then roll those assets into the same or another IRA within 60 days.Footnote ²

You have choices when it comes to your old employer-sponsored plan

Each option comes with its own pros and cons. Find out all the details, evaluate your choices and decide which one best fits your retirement goals.

Select to Learn more about your choices

Your Choices:

Roll over to a traditional IRA
Roll over to a Roth IRA
Take a lump-sum distributionFootnote ³
Leave the assets in your former plan
Move to a new employer's plan
Use any combination of the above

Best in Class for 'IRA Accounts'

Merrill Edge Self-Directed received a Best in Class award for "IRA Accounts" (for the fifth year in a row) — StockBrokers.com 2024 Annual Broker Review

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See more Merrill awards & accolades

Footnote

Merrill Edge Self-Directed was evaluated as one of 15 online brokers in StockBrokers.com 2022 Online Broker Review published on January 11, 2022. StockBrokers.com evaluated brokers using 205 variables across 9 categories: Customer Service, Commissions & Fees, Research, Platforms & Tools, Mobile Trading Apps, Offering of Investments, Education, Ease of Use, and Overall. The Best In Class rating recognizes brokers that ranked in the top 5 in that category. Learn more at StockBrokers.com popup. Rankings and recognition from StockBrokers.com are no guarantee of future investment success and do not ensure that a current or prospective client will experience a higher level of performance results and such rankings should not be construed as an endorsement.

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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.

Select to Try our Retirement Account selector tool

It's easy to roll over your assets to a Merrill IRA

Decide how you want to manage your IRA account

Make your own investments or have Merrill investment professionals invest and rebalance your portfolio for you, with the option to work with an advisor.

Discover IRA accounts available at Merrill

Learn more about the different IRA accounts at Merrill and find the one that works best for your rollover.

Select to learn more about Traditional IRA Select to learn more about Roth IRA Select to learn more about SEP IRA Select to learn more about SIMPLE IRA

Merrill offers transparent pricing for trades, account services and investment advisory programs.
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Ready to get started?

Open an account and roll over your retirement assets

or call us at 888.637.3343

Frequently Asked Questions

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What is the difference between a rollover IRA and a Traditional IRA or Roth IRA?

Traditional and Roth IRAs are individual retirement accounts that can provide potential tax advantages for retirement savings.
A rollover IRA is typically referring to an IRA (whether traditional or Roth) that receives assets in a roll over from an employer-sponsored retirement plan account.
You can roll over your old employer-sponsored plan account to a traditional IRA or a Roth IRA. You can roll pre-tax and after-tax assets into a traditional IRA and Roth assets into a Roth IRA. You can also convert non-Roth assets (pre-tax and after-tax assets) at the time of roll over into a Roth IRA, but you would owe income tax on the pre-tax contributions and any earnings (on both pre-tax and after-tax assets) you rolled over.

What are some advantages of rolling over an account?

Lets you roll over retirement investments from multiple 401(k) and 403(b) plans left at previous employers. You can even transfer an existing Rollover IRA into your new Merrill IRA account.
Maintains the tax-deferred status of your retirement investments
Access a full range of investment choices which may include many of the same (or similar) investments found in your current portfolio
Investing in an IRA may provide you a greater number of investment choices, but costs may be higher.

Learn more about the pros and cons of your choices for rolling over your 401k.Footnote ¹

You may be able to roll over to a Traditional or Roth IRA, roll over to a 401(k) at a new employer, take a distribution or leave the account where it is, depending on your unique financial needs and retirement goals. Each option presents different benefits and limitations with regard to available investment choices and services, fees and expenses, withdrawal rules, required minimum distributions, tax treatment (particularly with reference to employer stock), and protection from creditors and legal judgments. Additionally, there are limits to how often and when you can rollover your account.

Am I eligible to rollover funds?

What are the contribution limits during a rollover?

There are no limits to the amount of assets you can roll over from your 401(k), 403(b) or an existing retirement account, but additional contributions can be made to your IRA.

If you're currently maxing out your existing 401(k) or 403(b), but would like to contribute more to your retirement, you may want to consider other IRA products. Try our IRA Selector Tool to find the IRA that may be right for you.

What investment choices will I have?

Are there any fees?

Your Merrill Edge Self Directed IRA has unlimited $0 online stock, ETF and option trades with no trade or balance minimums.Footnote ⁴ Options contract and other fees may apply* See pricing for details on any fees associated with a Merrill IRA.

Your Merrill Edge Self Directed IRA has no minimum balance requirement and no annual account fee. Additional transaction, service or investment fees may apply.

What's the difference between a direct rollover and an indirect rollover?

With a direct rollover, the check from your employer sponsored plan is made out to the financial institution where you opened your IRA, for the benefit of you. Since this money is deposited directly from the 401(k) or other qualified retirement plan to the IRA, no taxes are withheld.

With an indirect rollover, the check is made payable to you. Your former employer withholds a mandatory 20% for taxes. You have 60 days to deposit these funds into an IRA, and must make up the 20% yourself, otherwise the 20% withheld will be considered a taxable distribution and only 80% will have the potential to continue to grow tax-free or tax-deferred. In addition, if you are under age 59½ you may be subject to a 10% additional federal tax, unless one of several exceptions applies.

What if I have company stock in my old 401(k)?

Some companies include company stock as an investment choice. If you have invested in company stock and your stock has grown in value, rather than rolling over the stock when you roll over your 401(k) assets, sometimes taking a "lump-sum distribution" of this stock can save you significant amounts of money. There are a number of variables to consider before you decide the best course of action.

We suggest you talk with a tax advisor to help you determine if this could be an appropriate strategy for your situation.Footnote ¹

How do I open my IRA?

Other fees may apply. Sales of ETFs 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 and mutual funds. To learn more about Merrill pricing, visit our Pricing page.

Footnote ¹ You have choices about what to do with your employer-sponsored retirement plan accounts. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over an employer-sponsored plan from your old job to 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 (particularly with reference to employer stock), and different types of protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information visit Should I rollover my 401k page or call Merrill at 888.637.3343.

Footnote ² Did you know that there are two ways to move assets from one IRA to another? The most common is a transfer. This is when you transfer assets from an IRA held at one financial institution to an IRA at another. You may directly transfer assets between investment firms as frequently as you wish. The second, less common approach is called An indirect rollover. Rollovers occur when you withdraw assets from an IRA and then "roll" those assets back into the same IRA or into another one within 60 days. IRS rules limit you to one rollover per client per twelve month period. For more information on rolling over your IRA, 401(k), 403(b) or SEP IRA, visit Should I rollover my 401k page or call a Merrill rollover specialist at 888.637.3343.

Footnote ³ Taxes will reduce the amount you receive.

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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Unlimited $0 Trades

With Merrill Edge Self‑Directed, get unlimited free online stock, ETF and option trades with no trade or balance minimumsFooter footnote ^b

Options contracts and other fees may applyFooter footnote ^a

Open an account with Merrill Edge Self-Directed

Footer footnote
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.
Footer footnote

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.

The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

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.

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

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