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An individual retirement account (IRA) provides individuals with a tax-advantaged way to save and invest money for retirement. There are two types of IRAs available through the Empower Retirement IRA: traditional IRA and Roth IRA.
An IRA allows you to set aside earned income up to a limit set each year by the federal government. If you're age 50 or older, you also may make an additional contribution. If you're married and file your taxes jointly, you and your spouse can each contribute to an IRA, even if only one of you is working. To learn more about contributions, go to Funding an IRA.
IRAs are also frequently used as a way to consolidate retirement assets into one account to simplify account tracking and management. If you've been a participant in an employer-sponsored group retirement plan, such as a 401(a), 401(k), 403(b) or eligible governmental 457(b) plan, and your employment has ended or you have an allowable distributable event, you may wish to roll over your plan assets into an IRA. You may also consider consolidating your other IRAs into just one.
Potential advantages of rolling eligible assets into an IRA may include:
• New investment choices
• Greater flexibility
• Lower fees (depending on your account balance)
• Continued tax benefits
You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering, but not limited to, any potential fees and/or limitation of investment options or services.
If you decide to continue growing your nest egg in an IRA, be sure you understand IRA contribution limits and withdrawal provisions.
We have a variety of online tools available to you. If you're curious about how close you may be to reaching your retirement goals, you may want to check out the calculators1 that can put your retirement objectives into meaningful numbers. You also have access to a glossary that can help you familiarize yourself with generic financial terms.
If you've never had a tax-advantaged retirement account, an IRA is a great way to begin saving and investing for your future. As with any retirement account option, you should consult with your financial advisor to choose the option that would work for you.
Open an IRA – Empower Retirement IRA
Please consult with your financial advisor, call (877) 804-6257 to speak to a retirement consultant, or
email us at RetirementSolutionsCenter@empower-retirement.com.
1 CALCULATORS ARE FOR ILLUSTRATIVE PURPOSES ONLY. They are not intended as financial planning or investment advice. You are encouraged to consult with your financial planner, attorney and/or tax advisor as needed.