We help our members understand their retirement benefits

We have two goals for our members: advocacy and training. If you are feeling overwhelmed later in your career, we can offer you specific training regarding human resources and retirement to help you stay up to date with industry changes.

Individual Retirement Accounts (IRAs) have become one of the most popular ways to hold retirement assets in the U.S. More wealth is held in IRA accounts than 401k accounts and IRA accounts represent about one-third of the U.S. retirement market, totaling about $9.3 trillion, according to Forbes. If you’re thinking about opening an IRA account, consider the following to get the most bang for your buck.

Consider Costs

Does it cost you more to stay where you’re at or leave? Small plans, or plans of about $10 million in assets, have a fee of about 1.1% annually. However, you may have the option to cut costs by rolling your funds into a low fee IRA or at a no-load mutual fund company, according to AARP.

If you are confused about what choice will be right for you, consult with your financial advisor to help create the best plan that will fit your lifestyle.

Take Advantage of Donations

One way to take advantage of an IRA is by making qualified charitable distributions (QCDs.) You can pull up to $100,000 per year from an IRA to donate to a charity and that amount is not included as taxable income. This tactic can be beneficial for someone who is looking to donate money to charity while reducing tax liability.

Will You Need the Money?

If you are in your 50s and considering opening an IRA account, will you need the money later? If you choose to roll your 401(k) over and make a withdrawal before the age of 59 1/2, you will be charged 10% tax in addition to taxes upon withdrawal. However, if you decide to retire at age 55, you can withdraw the money out of your employer’s 401(k) for no extra tax.

We pride ourselves in helping engineering professionals succeed. If you would like to gain access to more training, visit our online education portal at www.acecutah.org/education.