![]() ![]() Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”), and its agents.īank of America Private Bank is a division of Bank of America, N.A. Insurance and annuity products are offered through Merrill Lynch Life Agency Inc., a licensed insurance agency and wholly owned subsidiary of Bank of America Corporation. MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp. 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.”). For more information about these services and their differences, speak with your Merrill financial advisor. It is important to understand the differences, particularly when determining which service or services to select. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. ![]() This material does not take into account a client’s particular investment objectives, financial situations, or needs and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any security or investment strategy. ![]() Additional information is available in our Client Relationship Summary. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. You should consult your legal and/or tax advisors before making any financial decisions. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. Past performance does not guarantee future results. Asset allocation, rebalancing and diversification do not guarantee against risk in broadly declining markets. There is always the potential of losing money when you invest in securities. Once you reach the year that you'll turn your full retirement age, the earned income cap goes up, and for every $3 you go over, it’s a $1 withholding during the months until your birthday. For every $2 you earn over the limit, the SSA withholds $1 of your benefits. The SSA caps how much you are allowed to earn if you start taking your benefits before full retirement age, which is between 66 and 67 for most baby boomers. Even if you’re just working part-time, it’s important to consider how that continuing income will affect your benefits. Those hoping to work in retirement need to be especially careful if they’re planning to claim Social Security benefits early. You could structure the annuity to begin paying income in a few years, when you expect your federal taxable income, as well as your overall tax rate, to decline. Another option is to sell a non-IRA investment that earns taxable income, such as a taxable bond portfolio, and purchase a tax-deferred account, such as a deferred annuity. That may be worth it, though, because of the Roth IRA’s other tax advantages. So if you have both, you may want to carefully consider whether you should make withdrawals from your Roth IRA or traditional IRA first.Ī word of caution if you are considering converting a traditional IRA to a Roth IRA: Any deductible contributions as well as earnings that you convert will be included in your federal ordinary income in the year of the conversion. Qualified withdrawals from a Roth IRA, however, are generally not included in your federal taxable income. That's because withdrawals from a traditional IRA generally will be included in your federal taxable income. You may also want to consider a longer-term strategy for drawing from your individual retirement accounts (IRAs). ![]()
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