American Funds ®

IRAs

American Funds IRAs offer tax-advantaged savings, a broad range of investment choices, low fees and superior service.  

Benefits

Your earnings grow tax-deferred until withdrawn.

You may qualify for a tax deduction on contributions if you are within certain household income limits.

Your contributions are made with after-tax money; so, withdrawals from your contribution (basis) amount are always tax-free.

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

If you’re changing jobs or retiring, you can enjoy continued tax-deferred growth or a consolidation opportunity.

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

Pricing

You pay a one-time setup fee of $10 and an annual custodial fee of $10.

You pay a one-time setup fee of $10 and an annual custodial fee of $10.

There is no fee for rolling over to an IRA.

You pay a one-time setup fee of $10 and an annual custodial fee of $10 for a traditional or Roth IRA.  

Eligibility

Any person who has earned income through employment and who is under 70½.

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

For 2015:


Single filers with a modified adjusted gross income (MAGI1) of:

  • Less than $116,000 — full contribution
  • $116,000–$130,999 — partial contribution
  • $131,000 or more — not eligible

Joint filers with MAGI of:

  • Less than $183,000 — full contribution
  • $183,000–$192,999 — partial contribution
  • $193,000 or more — not eligible

Married, filing separately with MAGI of:

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

 

Contribution Limits2

For 2015:


You can contribute the lesser of 100% of taxable compensation or $5,500 ($6,500 for individuals age 50 or over); or $11,000 for couples filing jointly ($13,000 if both age 50 or over).

For 2015:


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

 

Objective-focused — Select a funds of funds portfolio that is based on your investment objective like preservation, balance or growth.

Customized — Build a retirement savings portfolio of American Funds tailored to your specific needs. 


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.   

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

1

Modified gross adjusted income (MAGI) is calculated by subtracting certain expenses and allowable adjustments from gross income. 

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 or Sunday.