Moving your IRA to Bank of America can help you save money and get better investment options. Whether you’re switching jobs or just want better service, this guide explains everything about Bank of America IRA transfers in simple terms. You’ll find real examples, easy-to-read tables, and clear answers to common questions.
What is an IRA Transfer?
An IRA transfer moves your retirement money from one bank or company to another without penalties. There are two main types:
| Transfer Type | How It Works | Tax Rules |
|---|---|---|
| Direct Transfer | Money goes straight between banks | No taxes or penalties |
| 60-Day Rollover | You get a check to deposit within 60 days | Must complete in 60 days or pay taxes |
Real Example:
Robert from Texas moved his old 401(k) from his previous job to a Bank of America IRA using a direct transfer. It took 7 days and he paid no taxes.
Why Transfer to Bank of America?
Bank of America (through Merrill Edge) offers:
- No transfer fees for most IRAs
- Thousands of investment choices – stocks, bonds, funds
- Easy management with your other Bank of America accounts
- Financial advisors to help if you have over $20,000
Special Benefit: Preferred Rewards members get discounts on investment fees.
How to Transfer Your IRA to Bank of America
Step 1: Open Your New IRA
- Go to Merrill Edge website or visit a branch
- Choose IRA type (Traditional or Roth)
- Fill out application (10-15 minutes)
Step 2: Start the Transfer
- Contact Bank of America or log in to Merrill Edge
- Provide old account information
- Choose “direct transfer” to avoid taxes
Step 3: Wait for Completion
- Usually takes 5-10 business days
- You’ll get confirmation when done
Step 4: Invest Your Money
- Pick from 20,000+ investment options
- Get help from advisors if needed
Real Example:
Teacher Mrs. Chen transferred her $50,000 IRA from another bank to Bank of America. She now manages it online with her checking account.
Fees and Costs to Know
| Service | Bank of America Cost |
|---|---|
| Account transfer | Free |
| Account closing | Some old banks charge $50-$100 |
| Annual fee | $0 |
| Trading fees | $0 for stocks/ETFs |
Money-Saving Tip: Ask Bank of America if they’ll cover transfer fees charged by your old bank (sometimes they do for large accounts).
Frequently Asked Questions (FAQs)
How long does an IRA transfer take?
Most complete in 1-2 weeks. 401(k) transfers may take longer (2-4 weeks).
Can I transfer my 401(k) to Bank of America?
Yes, this is called a rollover. The steps are similar but need special forms from your old job.
What’s the difference between transfer and rollover?
- Transfer = between similar accounts (IRA to IRA)
- Rollover = from 401(k) to IRA
Will I pay taxes?
Not if you do a direct transfer. Only 60-day rollovers risk taxes if late.
Can I transfer just part of my IRA?
Yes, partial transfers are allowed whenever you want.
Common Problems and Solutions
Problem: Old bank is slow to send money
Solution: Call both banks to check status
Problem: Missing paperwork
Solution: Merrill Edge has specialists to help (1-800-MERRILL)
Problem: Investments didn’t transfer
Solution: Some funds must be sold first – ask before transferring
Problem: Account number confusion
Solution: Double-check all numbers match exactly
Real Example:
Retired firefighter Mr. Davis had to resend one form when his IRA transfer got stuck. The Bank of America specialist helped fix it in 2 days.
Comparison: Bank of America vs Other IRA Providers
| Feature | Bank of America/Merrill | Fidelity | Charles Schwab |
|---|---|---|---|
| Transfer Time | 5-10 business days | 7-14 days | 7-14 days |
| Investment Choices | 20,000+ | 25,000+ | 20,000+ |
| Branch Support | 4,000+ locations | Limited | 300+ branches |
| Mobile App | 4.5 stars | 4.8 stars | 4.7 stars |
| Account Minimum | $0 | $0 | $0 |
Special Situations
Roth IRA Transfers:
- No taxes ever if rules are followed
- Keep records of original contributions
Inherited IRA Transfers:
- Different rules apply
- Must usually transfer within 1 year
- Required minimum distributions may apply
Real Example:
After her father passed, Sarah successfully moved his inherited IRA to Bank of America following their special inheritance department’s guidance.
Final Thoughts: Should You Transfer?
Bank of America makes IRA transfers simple with:
✔ No transfer fees
✔ Good investment options
✔ Help available if needed
Best For:
- Those who already bank with Bank of America
- People who want branch access
- Investors who might want advisor help later
Consider Other Options If:
- You want the absolute lowest cost online
- You need specialty investments