An IRA can offer a great way to help build additional savings for and in 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 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 savings can help your money compound at an even faster rate than money in non-tax-advantaged investment vehicles, an IRA can 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 can consolidate this money by rolling it into a single IRA.
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.1
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 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.
1 Rollovers and transfers may be subject to differences in features, costs, and surrender charges. Indirect transfers may be subject to taxation and penalties. Consult 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.
See how 3 people’s retirement contributions could stack up over 30 years.
A Hypothetical Illustration