IRAs | American Funds

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IRAs

American Funds IRAs offer tax-advantaged savings with a broad range of investment choices, low fees, and American Funds’ superior service and advisor resources at every stage of the sales cycle.

Traditional IRAs
Roth IRAs
Rollover IRAs

Benefits

Earnings grow tax-deferred until withdrawn.

 

Clients may qualify for a tax deduction on contributions if within certain household income limits.

Contributions are made with after-tax money; therefore, withdrawals from contribution amount (basis amount) are always tax-free.

 

No required minimum distributions (RMDs) from the original owner.

Clients changing jobs or retiring can enjoy continued tax-deferred growth or a consolidation opportunity.

(A rollover of pretax savings from an employer plan to a traditional IRA is not a taxable event. A rollover of pretax savings to a Roth IRA is a taxable event.)

Pricing

$10 one-time setup fee

$10 annual custodian fee

$10 one-time setup fee

$10 annual custodian fee

No fee for rolling over the account

$10 setup and $10 annual fee for a traditional or Roth IRA

Eligibility

Anyone under age 70½ who earns income through employment.

A nonworking spouse under age 70½ who files a joint return that includes earned income.

2018



Single filer
with modified adjusted gross income (MAGI)1of:

  • $120,000 or less — full contribution
  • $120,000—$134,999 — partial contribution
  • $135,000 or more — not eligible

Joint filers with MAGI of:

  • $189,000 or less — full contribution
  • $189,000—$198,999 — partial contribution
  • $199,000 or more — not eligible

Married, filing separately with MAGI of:

  • $0—$9,999 — partial contribution
  • $10,000 or more — not eligible

Contribution Limits2

For 2018, the lesser of 100% of taxable compensation or $5,500 ($1,000 catch-up for owners age 50 or over); or $11,000 for couples filing jointly ($13,000 if both age 50 or over).

Same as traditional IRA, subject to eligibility restrictions based on MAGI (noted above).


Investment Options

Convenience — A single investment provides a “funds of funds” portfolio of actively managed American Funds aligned with an investor’s time horizon. A carefully monitored retirement glide path means no more manual reallocation for you.

Objective-focused — With objectives like preservation and appreciation, these “funds of funds” offer diversification and control in a single investment.

Customization — Build a retirement savings portfolio of your preferred American Funds, or select a single-fund option. Either way, you control the investment mix.


Share Classes

Class A, C and F-2 shares are available for American Funds, the American Funds Portfolio Series and the American Funds Target Date Retirement Series.

PRODUCTS & SOLUTIONS

Above-Average Target Date Results

Our intelligent target date allocations have delivered above-average lifetime returns with lower volatility.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

1

Modified gross adjusted income (MAGI) is calculated by subtracting certain expenses and allowable adjustments from gross income. To determine your MAGI, contact your tax advisor.

2

Future contribution limits may be adjusted for cost-of-living increases. Contributions for the current tax year must be made by April 15 of the following year, unless that date falls on a Saturday, Sunday or legal holiday. In those cases, the due date is delayed until the next business day.