Q:

What are some benefits of investing in a Great-West retirement fund?

A:

Quick Answer

Great-West retirement funds offer investors several strategies for accumulating funds, including individual retirement accounts, or IRAs, employer-sponsored retirement plans, Section 162 bonus plans and nondisqualified deferment compensation plans. These services benefit individual investors and organizations, according to the Great-West website. Plan holders of all types enjoy record-keeping services and administrative services, along with account management.

Continue Reading

Full Answer

For individuals, the IRA is one of Great-West's primary retirement plan options. An IRA helps people save for retirement with a tax-free or deferred tax system, according to Fidelity. IRAs come in three main formats: traditional, Roth and Rollover. Traditional IRA accounts let plan holders make contributions to the account while deferring taxes. Each year, money invested in an IRA account is eligible for a tax deduction.

With Roth accounts, people contribute money that has already been taxed. This allows investments to grow partially tax-free. People may be able to retrieve account funds tax-free in retirement. Rollover IRAs are flexible plans that let employees move money from one account to another as they change jobs. These plans connect with employer-contribution plans, such as 401(k) plans and 403(b) plans.

Great-West's Section 162 bonus plans offer benefits to corporate clients. With these plans, employers create bonus plans with executives. Tax-deductible bonuses generated by the employer help executives pay premiums on their life insurance policies. Executives retain account ownership and can pass assets to beneficiaries.

Learn more about Financial Planning

Related Questions

Explore