An IRA can offer a great way to help build additional savings for retirement.
Even if you already contribute to an employer-sponsored retirement plan, you may be able to contribute to an IRA. If you can, it’s best to consider investing the maximum amount to both your employer-sponsored retirement plan and your IRA every year.
With the additional savings and careful investment strategies, you’ll be better positioned to live comfortably in retirement.
When you invest in an IRA, your contributions and potential earnings can compound over time while growing tax deferred (in the case of a Roth IRA, your withdrawals may be completely federal tax free, provided they meet certain criteria).
Since tax-deferred investments can help your money compound at an even faster rate than money in non-tax-advantaged investment vehicles, an IRA can potentially help you build additional funds for retirement.
If you have retirement assets in more than one IRA or employer plan — such as 403(b), 401(k) or 457(b) supplemental plans — you may want to consider consolidating this money by rolling it into a single IRA.1
Consolidating your savings with one provider can make it easier to manage your accounts and investment allocations, keep track of paperwork and potentially reduce the fees you pay.
With an IRA, you have options for generating income in retirement. You can take cash withdrawals to pay for unexpected expenses, set up a regular withdrawal schedule to help cover monthly expenses or plan to take your required minimum distributions.2
A TIAA-CREF IRA also offers you the ability to create a steady stream of income for either a lifetime or a guaranteed period of time.3
Evaluate IRA options at a glance, comparing the eligibility requirements, features and benefits of each.
1Prior to rolling over, consider your other options. You may be able to leave money in your current plan, withdraw cash or rollover the assets to your new employer’s plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA-CREF Consultant and your tax advisor regarding your situation.
2 Withdrawals of earnings from a retirement account are subject to ordinary income tax, plus a possible federal 10% penalty if you make a withdrawal before age 59 ½.
3 Available through guaranteed annuity products only. Guarantees are backed by the claims paying ability of the issuer.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. TIAA-CREF does not provide tax or legal advice. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY.
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See how 3 people’s retirement contributions may grow over 30 years.
A Hypothetical Illustration