A 401(k) is an employer-sponsored retirement savings vehicle that allows employees and employers to contribute tax-deferred money into an account. Employees often benefit from matching contributions from their employers and a relatively high level of eligible contributions.
While you may not have access to alternative retirement plans, there are some tools you can use with or without your employer’s sponsorship.
Alternatives to the 401(k)
Below are additional savings alternatives to a 401(k):
Individual Retirements Accounts can be opened by anyone who earns income. They are tax-advantaged accounts that allow you to make contributions subject to annual IRS limits.
There are four types of IRAs:
Traditional IRA—Your contributions are tax deductible and interest is tax-deferred until funds are withdrawn. Required Minimum Distributions (RMDs) begin at age 70 ½, but you can withdraw your earnings as early as 59 ½.
Roth IRA—Your contributions are not tax-deductible and are made with after-tax dollars, but your withdrawals are tax-free. You can withdraw funds from your account at 59 ½, and there are no RMDs for a Roth IRA.
SEP IRA—A SimplifiedEmployeePension (SEP) Plan is a retirement plan set up for small employers or self-employed individuals. Synchrony Bank does not administer SEP plans, but funds in these plans can be transferred to Synchrony Bank and placed in a Traditional IRA.
SIMPLE IRA Plan—A Savings Incentive MatchPlan for Employees (SIMPLE) may be offered by small businesses that do not offer a 401(k). Synchrony Bank does not offer SIMPLE IRA plan accounts, but funds in these plans can be transferred and placed in a Synchrony Bank Traditional IRA.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
Call Synchrony Bank to Start Saving for Retirement Today
Whether your employer offers a 401(k) or not, Synchrony Bank has several retirement savings tools to help you reach your retirement goals.
Call us at 1-844-345-5789 to talk to a representative today.
Which banks offer the best savings accounts? Finding the right home for your money is critical to maximizing your savings. The best banks for savings accounts offer great customer service, stability and flexibility—in addition to competitive interest rates. Keep reading to learn more about what elevates…
Many Americans wonder, "What percentage of my salary should I save for retirement?" as they look ahead to the future. Retirement planning can be challenging but it is important to ensure you're saving enough for a comfortable life in your golden years. These tips will help…
Are you wondering how a money market account works? Many people do not know that money market accounts offer a solid option for your savings. Money market accounts are similar to savings accounts, with a few important distinctions. Read on to learn how money market accounts work…
If you are wondering, 'How much money should I save to buy a house?' — you are not alone. Many home buyers struggle with understanding how much cash they'll need to close on their home. We'll help you plan ahead to purchase your future home. Learn…
If you are comparing certificates of deposit (CD) rates, make sure you do your homework. There are several factors that will impact your certificate of deposit rate, such as the term of the CD and the amount of your contribution. Keep reading to learn the basics on…
What is a certificate of deposit? If you are looking for a long-term strategy for growing your money but want to avoid the risks of the stock market, a certificate of deposit (also called a CD) might be a good choice for you. Keep reading to learn more…
Regular savings accounts provide a secure place to set away money for future use. There are multiple benefits to using savings accounts in your financial portfolio, such as easy access to your funds. Keep reading to learn how regular savings accounts can be a useful tool to grow your…
It is never too early for young adults to start a savings plan. Whether your goal is to quickly pay off student loans or to plan ahead for retirement, putting money aside is a great way to get ahead in life. Keep reading to learn a few strategies for…
Even if you open a savings account to save for the future, you may still want to easy access to your money. Many savings accounts include a cash card so you have access to your funds 24/7. Keep reading to learn about opening a savings account that comes…
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 06/28/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.
FDIC INSURANCE: FDIC Insurance up to $250,000 per depositor, per insured bank, for each ownership category.
IDENTITY THEFT RESOLUTION SERVICES are provided by CyberScout™.
AWARDS: Synchrony Bank achieved a five-star rating for 1st Quarter 2014 through 2nd Quarter 2015. Click here to see our Why Us page for details.
NATIONAL AVERAGE: National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. as of 6/01/2018. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed. Please click on "Learn More" above for additional disclosures for each product.