Take care of future you

Traditional IRA

Tax-deferred growth

Reduce your taxable income by deducting your contributions, if eligible, and your potential earnings grow tax-deferred.⁶

Reasons to choose a traditional IRA:

Tax savings: You could save on taxes now by deducting some or all of your contributions,⁷ if you're within IRS income limits. You’ll pay taxes in retirement when you make withdrawals.

Easy to qualify: As long as you or your spouse earn income, you can contribute to a traditional IRA.⁷

Access to your money: Withdrawals before age 59½ are subject to income tax and a 10% penalty. Though, you can make penalty-free withdrawals for certain expenses.⁸

Rollover IRA

Consolidate your retirement savings

After a job change, consolidate your former 401(k) and workplace accounts into a single account without taxes or penalties. 

Benefits of a rollover IRA:

Stay organized and potentially save on fees: Moving your old retirement accounts into a Fidelity rollover IRA may help keep you from losing track of them, and you could save money on administrative fees.

Flexibility and choice: You can move your money tax- and penalty-free.⁹ And, with a rollover IRA, you can generally choose from a wider range of investments than you can in an employer's plan.

Access to your money: Like with a traditional IRA, withdrawals before age 59 ½ are subject to income tax and a 10% penalty. However, you can make penalty-free withdrawals for certain expenses.⁸

In addition to rolling over to an IRA, you’ve got some other options for what to do with your old 401(k)