IRAs - American Funds | Capital Group
On Thanksgiving Day, the New York Stock Exchange and Capital Group’s U.S. offices will be closed.
In observance of the holiday, the New York Stock Exchange and Capital Group, home of American Funds, will be closed on Thursday, November 26. On Friday, November 27, the New York Stock Exchange will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET).

IRAs

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

Traditional IRAs

Roth IRAs

Rollover IRAs

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Your earnings grow tax-deferred until withdrawn.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 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

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

Anyone who earns income through employment.

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

2020


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

  • $124,000 or less — full contribution
  • $124,001—$138,999 — partial contribution
  • $139,000 or more — not eligible

Joint filers with MAGI of:

  • $196,000 or less — full contribution
  • $196,001—$205,999 — partial contribution
  • $206,000 or more — not eligible

Married, filing separately with MAGI of:

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

 

Contribution Limits2

For 2020, the lesser of 100% of taxable compensation or $6,000 ($1,000 catch-up for owners age 50 or over); or $12,000 for couples filing jointly ($14,000 if both age 50 or over).

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

 

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Investment Options

American Funds Portfolio SeriesSM

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

Individual Mutual Funds

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

ABOUT AMERICAN FUNDS

Our distinctive investment approach was designed with investors and their goals in mind.

LEARN MORE

Set Up an Account

    • Call your financial professional to open an account with American Funds. Don’t have a financial advisor? We can help you find one.

Roll Over an Account

    • Your financial professional can help you open a rollover IRA with us. 

      American Funds Rollover Specialists are also available at (800) 421-9923 from 8:00 a.m. to 7:00 p.m., Monday through Friday, to answer any questions you may have about the rollover process.

Related Products

Other Resources

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

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.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

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