Mutual of America offers IRA and Annuity retirement plan benefits. Both of these retirement plans come with a variety of pay out and investment options. They are also available to individuals or groups.
The term IRA stands for Independent Retirement Annuity. These plans use long term investments to build retirement benefits. They also allow account holders to make their own investment decisions.
Investors can choose from a traditional or Roth IRA. The traditional IRA is tax deferred. Investors pay no taxes on their earnings until they withdraw funds from the account. Roth IRAs become tax free after five years, if the investor is at least 59.5 years of age when withdrawing funds.
Annuities allow investors to use their assets as income and receive regular payments, regardless of age. For an immediate annuity, the investor deposits a lump sum into the account and selects a starting payment date that falls within 13 months. Monthly payments can be made to the investor or another party, like a child or spouse.
A deferred annuity option allows the investor to make a lump sum deposit that grows over time for payout at a later age in life. Early withdrawals from the account are significantly penalized.