IRA & 401(k) Retirement Accounts with Merrill (2024)

FAQs

Is Merrill Lynch good for IRAs? ›

Roth IRA. With a Merrill Roth IRA account, you can benefit from the potential to earn tax-free income and greater withdrawal flexibility in retirement.

“Unless you started with a lot of money, or you save a tremendous amount of money each year, just maxing out your 401(k), even with an employer match, isn't going to get you there,” said Quintin Hardtner in an interview, a financial professional with Hardtner Wealth Strategies in Shreveport, Louisiana.

Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret. There are ways to catch up.

If, for instance, you leave your job during or after the year you turn 55, the rule of 55 generally allows you to tap your account under your employer's retirement plan, such as a 401(k), without owing the 10% early withdrawal tax.

Any assets you hold in your Merrill Cash Management Account ® (CMA account) are protected by the Securities Investor Protection Corporation (SIPC). The SIPC provides up to $500,000 of account protection per client, inclusive of up to $250,000 for cash.

Withdrawing from your IRA

Beginning at age 59½, you can withdraw money (of which any deductible contributions and investment earnings are taxable at your then-current income tax rate) from your IRA as desired without the 10% additional tax, whether or not you are still employed.

Financial Samurai 401k Savings Guideline

From the results, the average 30 year old should have between $100,000 – $350,000 saved up in their 401k, depending on company match and investment performance. If you're looking for a realistic goal, then focus on the Middle column all down the chart.

Because the IRS limits the amount you can contribute each year, distributions from just your 401(k) fund may not be enough to last you through retirement. How much you can save is not the only issue. Taxes can have a huge impact on how long your retirement income will last, so it helps to diversify how you save.

If you contribute 5,000 dollars per year to a Roth IRA and earn an average annual return of 10 percent, your account balance will be worth a figure in the region of 250,000 dollars after 20 years.

As a result, an oft-stated rule of thumb suggests workers can base their retirement on a percentage of their current income. “Seventy to 80% of pre-retirement income is good to shoot for,” said Ben Bakkum, senior investment strategist with New York City financial firm Betterment, in an email.

What is the average 401k balance for a 65 year old? ›

You can begin withdrawing money from your traditional 401(k) without penalty when you turn age 59½. But you still have to pay taxes when you withdraw, because you didn't pay income taxes on it back when you put it in the account.

The IRS allows penalty-free withdrawals from retirement accounts after age 59½ and requires withdrawals after age 72. (These are called required minimum distributions, or RMDs). There are some exceptions to these rules for 401(k) plans and other qualified plans.

The range of the markup that Merrill charges is between 0.50% – 2.00%, depending on the maturity of the MLI. A portion of the Merrill markup, which may be discounted by your Advisor, is paid to your Advisor as compensation.

Advisors with Merrill Lynch Wealth Management have received numerous awards for their performance and service in recent years. It placed over 600 advisors on the Forbes list of Best In-State Advisors for 2018, more than any other company.