Merrill Edge Self Directed IRA Review 2024: Features, Fees, and More

Best If You Want

With more than $1.6 trillion in assets under management, Bank of America is one of the largest financial institutions in the United States—and if you already have a bank account with them, having a Merrill Edge self-directed IRA account can simplify your life while also offering top-of-the line integrated research and charting tools. Bank of America has teamed up with Merrill Lynch Wealth Management to offer different investment options to its customers that are integrated across the BoA platform, and $0 account minimums, $0 commissions on stocks and ETFs and $0 annual program fee, Merrill Edge is a solid choice for those looking for a place to manage their retirement accounts, whether you’re an existing Bank of America customer or not. However, the platform does not allow investment in some increasingly popular investment asset classes like futures, foreign exchange (forex), or cryptocurrency.

Fees

Merrill Edge offers $0 trades on stocks and exchange-traded funds (ETFs), though other types of trade fees apply

What You Can Invest In

Merrill Edge allows investors to allocate their funds into online stock, ETFs, bonds, mutual funds, and options and also offers margin trading (which allows you to use borrowed funds to maximize your investment potential). However, those interested in newer investing ideas and different investment options, such as cryptocurrency, may find Merrill Edge lacking since it remains focused on more traditional investment options.

Limitations

Merrill Edge does not offer fractional shares, futures, foreign exchange (forex) trading, or cryptocurrency. While there are no annual account fees for a self-directed Merrill Edge account, for those interested in Merrill Edge investment advisory services, discounts for higher tiers of advisement are reserved for Bank of America customers.

Account Minimums

Merrill Edge does not carry an account minimum for its self-directed investment products, including traditional IRAs and Roth IRAs.

Customer Support

The Merrill Edge customer service team is available by phone at 888-637-3343, and you can also schedule an in-person meeting at a physical branch. However, Merrill Edge has lower-than-average customer service ratings on third-party sites like TrustPilot and the Better Business Bureau.

Account Types

Merrill Edge offers several different types of retirement accounts, and which retirement plan will work best for you depends on your specific financial situation, particular investment objectives, income level, tax bracket, and more.

Traditional IRA

A traditional IRA is funded with pre-tax money. That means your funds will grow tax-deferred and eventually be subject to regular income tax once you withdraw them (and their gains) in retirement time. Traditional IRAs are subject to annual contribution maximums, but you can contribute to one no matter how much money you earn, so long as you or your spouse earn taxable dollars. Traditional IRAs are a good choice for those who plan to be in a lower income bracket during their retirement.

Roth IRA

A Roth IRA works in exactly the opposite way as a traditional IRA: You pay taxes on the money you contribute today, which means it’s not tax-deductible, but you can look forward to tax-free withdrawals come retirement time. However, Roth IRAs are subject to some additional restrictions, including af five-year holding period and income eligibility limits. In 2024, if you earn $161,000 as a single tax filer or $240,000 for those married filing jointly, you are ineligible to contribute directly to a Roth. However, there are (legal) ways around this, namely the backdoor Roth, which can help you take advantage of this kind of tax-incentivized retirement plan. A professional financial advisor can help you learn more.

SEP IRA

SEP IRAs are designed for self-employed people and small business owners and can maximize the amount of money you and your employees are able to contribute to your retirement accounts. Merrill Edge offers a SEP IRA for those with an eligible business structure.

Rollover IRA

A Rollover IRA is designed to catch the funds from an old retirement account, be it an employer-sponsored type like a 401(k) or another IRA. However, the tax structure of the rollover IRA must match the tax structure of the preceding account type. (For instance, if you’re rolling over a traditional account, you must choose a traditional rollover IRA.)

Other Features

Since it’s integrated with the larger Bank of America Corporation, Merrill Edge truly shines when it comes to added features. Along with the investment options listed above, Merrill Edge customers can open CDs on the platform, explore fixed-income products like annuities, open checking, and savings accounts through Bank of America, and take out loans, including auto loans and mortgages.

Considering a Merrill Edge Self-Directed IRA?

A Merrill Edge self-directed IRA gives investors the tools they need to make informed decisions on basic investment options, with a well-appointed and easy-to-use platform with plenty of integrated tools. However, for those who aren’t yet Bank of America customers, discounts for upper-tier financial advisory services may remain inaccessible, and for those looking for forward-facing investment choices like cryptocurrency and futures, Merrill Edge may not cut it.

Need help getting started on your 401(k) rollover? Capitalize can help you get all your old retirement funds into one place so they’re easy to manage and grow—so you can fund your ideal financial future.