Bank of America 529 Plan Overview

Saving for your child’s education or your own retirement is one of the most important financial steps you can take. With the rising costs of college and the increasing need for retirement readiness, planning early can make all the difference.

Bank of America, through its trusted investment platform Merrill, offers a range of tools to help you save smarter. Whether you’re planning for a child’s future college expenses or your own golden years, BoA has options to support you.

In this article, we’ll cover everything about Bank of America’s 529 plans, UTMA accounts, IRA transfers, and more.

What Education & Retirement Plans Does Bank of America Offer?

Bank of America provides access to a suite of savings and investment plans, including:

• 529 Plans: Tax-advantaged accounts designed to save for future education expenses.

• UTMA Accounts: Custodial accounts that allow adults to gift assets to minors.

• IRAs & Roth IRAs: Retirement accounts offering tax-deferred or tax-free growth.

• NA RASP ILAXX: A specialized investment fund within a Retirement Account Savings Plan.

Whether you’re a parent, grandparent, or future retiree, BoA offers solutions tailored to your goals.

Does Bank of America Have a 529 Plan?

Yes, Bank of America offers 529 plans through Merrill Investing, its dedicated investment platform. These plans are designed for saving toward education expenses such as college tuition, K-12 private school, and even some apprenticeship programs.

How It Works:

• Open a 529 account through Merrill.

• Choose from a range of investment portfolios based on your risk tolerance and child’s age.

• Enjoy tax-free withdrawals for qualified education expenses.

Real-Life Example:

A parent saving $300/month in a Merrill 529 plan could accumulate over $52,000 in 10 years, assuming a 6% average annual return.

📍 Availability: While Merrill supports most 529 plans nationwide, state-specific benefits (like tax deductions) depend on your state of residence.

Understanding UTMA Accounts with Bank of America

A UTMA (Uniform Transfers to Minors Act) account allows an adult to gift assets—cash, stocks, or bonds—to a child, who takes control of the account upon reaching adulthood (typically 18 or 21).

Bank of America UTMA Features:

• Opened under the child’s name with an adult custodian managing the assets.

• Funds can be used for any benefit to the minor, not just education.

• BoA offers UTMA accounts through Merrill Edge with a wide range of investment options.

UTMA vs. 529:

What Is Bank of America NA RASP ILAXX?

NA RASP ILAXX appears to refer to a specific retirement savings investment fund offered within a Retirement Account Savings Plan (RASP) framework.

What You Need to Know:

• RASP: A structured retirement savings product.

• ILAXX: Likely a fund or investment strategy within this product (often proprietary).

• Best suited for long-term retirement investors looking for managed growth.

• Contact Merrill or your BoA advisor for fund performance, risk profile, and fees.

Investing with Merrill through Bank of America

Merrill, BoA’s investing platform, offers a comprehensive suite of investment tools including:

• 529 College Savings Plans

• UTMA Custodial Accounts

• IRAs and Roth IRAs

• Mutual Funds, ETFs, and Stocks

Investment Options:

• Self-Directed: Manage your own portfolio via Merrill Edge.

• Guided Investing: Automated portfolios based on your goals and risk tolerance.

• Advisor-Led: Work directly with a Merrill financial advisor.

Merrill Edge seamlessly integrates with BoA’s online banking, making it easier to manage and transfer funds.

Understanding IRA Options at Bank of America

IRA Transfer:

You can easily transfer an IRA to Bank of America using Merrill Edge. This includes:

• Traditional IRA

• Roth IRA

• SEP and SIMPLE IRAs

Transfers are usually tax-free when done correctly via direct rollover.

Roth IRA Interest Rate:

Unlike CDs or savings accounts, Roth IRAs don’t have fixed interest rates. Instead, your return depends on the performance of the investments you choose—stocks, bonds, mutual funds, etc.

Roth vs. Traditional IRA:

Which Account Is Right for You? (Comparison Table)

FAQs – Common Questions About Bank of America Savings Plans

Can I open both a 529 and UTMA?
Yes. Many parents use a 529 for education and a UTMA for other needs like a first car or travel.

What’s the difference between UTMA and 529?
UTMA is more flexible in spending; 529 is strictly for education and tax-advantaged.

How do I transfer my IRA to Bank of America?
Contact Merrill for a direct IRA rollover. It’s a simple process, usually completed within a week.

What are the fees?
Fees vary by account type and investment choices. Merrill Edge self-directed accounts have low or no fees, while managed accounts may have advisory costs.

Final Thoughts: Is Bank of America the Right Choice for Your Long-Term Savings?

Bank of America provides a robust lineup of education and retirement accounts through its Merrill investing platform. From flexible UTMA accounts to tax-friendly 529 plans and IRAs, it’s a one-stop shop for financial planning.

That said, BoA prioritizes convenience and integration, while some competitors may offer lower fees or more fund choices. If you value unified banking and investing, BoA is a solid option.

Ready to take control of your future? Start exploring your savings options with Bank of America today.