Q:

What types of 401(k) retirement plans does JPMorgan offer?

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Quick Answer

J.P. Morgan offers three types of 410(k) retirement plans tailor-made for the various types of clients, according to J.P Morgan Asset Management. The three types of 410(k) plans, as of 2015, are the Traditional IRAs, Roth IRAs and Rollover IRAs.

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Full Answer

The traditional Individual Retirement Account is the first retirement plan available from J.P. Morgan. A traditional IRA provides clients with the advantage of tax-deferred growth as well as the possibility of making tax deductible contributions. With traditional Individual Retirement Accounts, account holders younger than 70 ½ are allowed to make contributions provided that the individual or his spouse have earned an amount equal to or more than their required contribution amount. Traditional IRAs have no maximum income limits and they allow for penalty-free withdrawals for account holders as young as 59 ½.

J.P. Morgan also offers Roth IRAs, which allow for both tax-deferred growth and tax-free withdrawals. There are no age restrictions with Roth IRAs, and account holders or their spouses are only required to be on payroll and to satisfy specific income requirements. In order for account holders to maintain the tax-free incentive, they’re required to hold the account for a minimum of 5 years in addition to having a qualifying event such as attainment of age 59 ½ by the time they wish to withdraw their savings.

J.P. Morgan also offers Rollover IRAs, which provide job changers and retirees with the opportunity to transfer company retirement savings to a Traditional or Roth IRA without taxes and penalties. However, saving transfers from Rollover to Roth IRAs are subjected to tax, except for qualified withdrawals, explains J.P. Morgan.

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