What Retirement Plans Does Vanguard Offer?


Quick Answer

Vanguard offers Roth and traditional IRAs, a SEP, SIMPLE, 401(k) and deferred annuities. Roth and traditional IRAs are ideal for individuals, while SEPs, SIMPLEs and 401(k)s target small business owners, per Vanguard. Deferred annuities are an option for anyone who maxes out their IRA and 401(k).

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Full Answer

An Individual Retirement Account, or IRA, comes with tax benefits, possible financial growth through investments and greater flexibility when compared to 401(k)s. Individuals choose from tax breaks on current contributions or a tax-free withdrawal at retirement, according to Vanguard. Interest, dividends and capital gains on initial contributions offer opportunities for retirement savings growth.

Deferred fixed and variable annuities offer continuation of retirement savings when an IRA and 401(k) maxes out. Fixed deferred annuities provide fixed return rates, while variable deferred annuities offer greater growth potential through varied investments, states Vanguard. Money withdrawn when the investor is under age 59 1/2 faces taxes and penalties.

An Individual 401(k) works for people who are sole proprietors and have no common-law employees, notes Vanguard. SEP-IRA plans benefit employers who want to make contributions to their employees' retirement plans, while SIMPLE IRAs encourage employee contributions. Any business that has no other retirement plan can offer a SEP-IRA. Simple IRAs are an option for businesses with 100 or fewer employees.

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