Understanding the Basics
- Introduction
- Your Role In Planning for Retirement
- Why You Should Invest in a 401(k) Plan
- A New Option to the 401(k)
- Choosing between a 401(k) and a Roth IRA
- Key Considerations
Key Considerations
To help you make decisions about where to save for retirement that fit your specific situation, consider the following points:
- Consider making the maximum pre-tax contribution to your company retirement plan, especially if it has a company match. Payroll deductions ensure the money will go into your account.
- A company retirement plan will typically allow you to make a much higher annual contribution than an IRA, which is capped at $6,000 in 2020 (up from $5,500 in 2019). Catch-up provisions may apply.
- Most company retirement plans allow you to take a loan against your account balance.
- If you've maxed out the pre-tax annual contribution to your company retirement plan, and you qualify to establish a Roth IRA, save in the Roth IRA to take advantage of tax-free growth and withdrawals. If you don't qualify for a Roth IRA, you can make a non-deductible contribution to a traditional IRA.
Keep in mind that it's your responsibility to make sure you have enough money when you retire. Here are some questions to ask as you go along.
- Are you saving enough?
- How much can you afford to save?
- How should you use your 401(k) plan to save?
- What other retirement savings options do you have?
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Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.