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Your earnings grow tax-deferred until withdrawn.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. 


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. 

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.