First, let's pick your money goal
Great! You want to plan for your retirement.
Women live about 6 years longer than men, so planning for those extra years is key to helping ensure your money lasts. The good news? Anyone earning income can contribute to an IRA, even if you already have a workplace plan, and they come in a few flavors (with different perks).
If you have a workplace retirement plan, and they offer any sort of employer match, don’t miss out (it's basically free money).
Based on your retirement goal, you've got options
Roth IRA
Tax-free growth and withdrawals
With the potential for tax-free growth and tax-free withdrawals in retirement1 a Roth IRA can help you keep more of what you earn.
Reasons to choose a Roth IRA:
Keep more of what you earn: Any potential Roth IRA earnings grow tax-free, with tax-free withdrawals in retirement.1
Penalty-free withdrawals: Need money in a pinch? You can withdraw your contributions without taxes or penalties, at any time, for any reason. 1
Easy to qualify: As long as you have earned income up to limits set by the IRS, you can contribute to a Roth IRA. Not sure how much to contribute? Use our Contribution Calculator.
Traditional IRA
Tax-deferred growth
Reduce your taxable income by deducting your contributions, if eligible, and your potential earnings could grow tax-deferred.2
Reasons to choose a traditional IRA:
Tax benefits: If you're within the IRS income limits, you may be able to deduct all or part of your contributions from your taxable income so you can reduce your income tax.3
Flexibility: As long as you are still working, you can contribute to a traditional IRA, even if you have a 401(k).3
Access to cash (within limits): You can take penalty-free withdrawals for certain expenses, such as a first home purchase, birth, adoption, or education expenses.4
Rollover IRA
401(k) and 403(b) flexibility
Consolidate your old 401(k) and workplace accounts into a centralized account without taxes or penalties.
Reasons to choose a rollover IRA:
Tax benefits: You won't pay taxes on potential growth until you make withdrawals—and you can still make contributions to the account. What’s more, moving money from a former workplace plan to a Fidelity rollover IRA is free from taxes or penalties.5
Flexibility: With a rollover IRA, you can often choose from a wider range of investments than you can in an employer’s plan. However, when you reach age 73,a you are required to take a certain amount of money out of your rollover IRA each year, called a required minimum distribution (RMD).
Access to your money: You can take penalty-free withdrawals for certain expenses, such as a first home purchase, birth, adoption, or college expenses. However, a 10% early withdrawal penalty may apply for other withdrawals taken prior to age 59½.
You may want to consider other options for what to do with your old 401(k) when you retire or change jobs.
We love your questions
Sometimes a conversation is what you need to get started (or keep going). Talk to a financial professional (for free) to help you plan for the things that can affect women's finances—from living longer to higher health care costs. We got you.
Call us anytime at 1-800-FIDELITY (800-343-3548)
Not sure what to ask? Check out these conversation starters.
