- Industry: Financial services
- Number of terms: 10107
- Number of blossaries: 0
- Company Profile:
The following accounts are eligible retirement accounts for Merrill Lynch Direct: IRA, IRA Rollover (IRRA), and Roth IRA.
'''Individual Retirement Account (IRA)'''
The traditional IRA permits individuals to make annual contributions of up to $3,000 (effective for 2002) or 100% of earned income, whichever is less. Contributions may be tax deductible (if certain conditions are met). Amounts contributed and earnings grow tax-deferred, and are not subject to ordinary income tax until withdrawn. Beginning in 2002, individuals age 50 and over, are permitted to make additional "catch-up" contributions in the amount of $500. Required minimum distributions apply once an individual reaches age 70 ½. Distributions prior to age 59 ½ are subject to a penalty, unless an exception applies.
'''Individual Retirement Rollover Account (IRRA)'''
The IRRA is a traditional IRA that holds part or all of a distribution received from a qualified plan. This account is appropriate for individuals who wish to maintain a separate IRA for those assets, which were previously distributed from a qualified plan .
'''Roth Individual Retirement Account (IRA)'''
The Roth IRA permits individuals to make non-deductible, annual contributions of up to $3,000 (effective for 2002) or 100% of earned income, if less. Married couples filing jointly can contribute up to $6,000 (or 100% of earned income, if less). Contribution limits may be further reduced if modified adjusted gross income (MAGI) is above certain amounts and eligibility to make Roth IRA contributions phases out depending on MAGI levels. Beginning in 2002, individuals age 50 and over are permitted to make additional "catch-up" contributions in the amount of $500. Additional restrictions apply if contributions are also made to a traditional IRA. While your annual contribution is not deductible, any earnings grow advantaged, which can help produce a greater total return over the long term. After five years, withdrawals taken at retirement or for other qualified purposes may be tax-free.
Industry:Financial services
The number of stock options available to you for exercise.
Industry:Financial services
The market value of a single share of an open end mutual fund. It is calculated by subtracting the fund's liabilities from its assets, and then dividing the result by the number of shares outstanding.
Industry:Financial services
A measure of the performance generated during a determined time period. Mutual funds are required to disclose returns in their prospectus on a calendar year basis, and on an average annual basis for set time periods, including average annual returns before and after taxes.
Industry:Financial services
The number of employee stock options you have used to purchase shares or sold for cash.
Industry:Financial services
Net Asset Value represents the market value of a single share of an open end mutual fund. It is calculated by subtracting the fund's liabilities from its assets, and then dividing the result by the number of shares outstanding.
Industry:Financial services
Describes the annualised return of the Covered Call Option if it is Assigned at Maturity. The return is defined by: (Option Premium + if positive (Strike Price - Market Price))/Market Price. The annualised return is determined by multiplying the return by 12 and dividing it by the number of months left to maturity (rounded up).
Industry:Financial services
The number of employee stock options granted to you by your company.
Industry:Financial services
The number of contracts held long or short in the account.
Industry:Financial services
Also called the option premium, the price paid by the buyer of the options contract for the right to buy or sell a security at a specified price in the future.
Industry:Financial services
