Empower Retirement 457(b) Plan - Reviews, Benefits, Fees & Ratings

If you are looking for a comprehensive guide to the Empower Retirement 457(b) Plan, you have come to the right place!

In this article, we will discuss everything from reviews and benefits to fees and ratings. We will also provide helpful tips on how to choose the best plan for your needs.

So, whether you are just starting out in your career or nearing retirement, read on for all the information you need to make an informed decision about your retirement savings!

What is an Empower Retirement 457(b) Plan?

An Empower Retirement 457(b) Plan is a type of retirement savings plan that is sponsored by an employer. Employees can contribute to the plan on a pre-tax or post-tax basis. The funds in the account can be used to supplement income during retirement.

How Does an Empower Retirement 457(b) Plan Work?

An Empower Retirement 457(b) Plan works by employees contributing a portion of their salary into the account. The 457(b) Plan is then invested by Empower Retirement and the earnings grow tax-deferred. When employees retire or leave their job, they can take distributions from their account.

What Are The Key Features of an Empower Retirement 457(b) Plan?

Now that we've covered the basics of what a 457 plan is, let's take a look at some of the key features that make this type of retirement savings plan so attractive.

For starters, 457 plans offer employees the ability to contribute pretax dollars to their accounts. This can have a major impact on your overall tax liability come retirement time.

Additionally, 457 plans offer a very high contribution limit when compared to other types of retirement savings plans. For example, in 2020 the contribution limit for a 401(k) is just $19,500. But with a 457 plan, you can contribute up to $19,500 per year - and that's not including any employer contributions!

Lastly, 457 plans also offer a great deal of flexibility when it comes to withdrawals. Unlike a 401(k), you can begin taking distributions from your 457 plan as early as age 55 without incurring any penalties.

What Commissions and Management Fees Does an Empower Retirement 457(b) Plan Come With?

Empower Retirement's 457 plans come with a few different fees. The first is an annual management fee, which is charged by the financial institution managing the account. This fee can range from 0.25% to 0.40% of the account balance, depending on the provider.

The second type of fee is a commission, which is charged by the broker or agent who sold you the plan. Commissions typically range from 0 to 0.15% of the account balance, but can be higher for some providers.

Finally, there may also be a fee charged by the investment company that manages the investments within the account. This fee is generally around 0.50% of the account balance.

What Are The Advantages of an Empower Retirement 457(b) Plan?

There are several advantages of an Empower Retirement 457(b) Plan.

First, it allows you to save for retirement on a tax-deferred basis. This means that you will not have to pay taxes on the money you contribute to your account until you withdraw it in retirement.

Second, the money in your account grows tax-free. This means that you can accumulate more money in your account than you would be able to if you were paying taxes on the growth. Third, you can withdraw money from your account before retirement without paying a penalty. This can be a great way to access funds in case of an emergency.

Finally, an Empower Retirement 457(b) Plan can provide you with peace of mind in knowing that you are saving for retirement. This can be a great motivator to stick to your savings plan and reach your retirement goals.

What Are The Disadvantages of an Empower Retirement 457(b) Plan?

The main disadvantage of an Empower Retirement 457(b) Plan is that it's not as flexible as other retirement savings options. For example, you can't take out a loan against your account balance and there are limitations on when you can withdraw money without paying a penalty.

Another potential downside is that the fees associated with an Empower Retirement 457(b) Plan can be higher than other retirement savings options. Be sure to carefully review the fees before opening an account.

Finally, keep in mind that unlike traditional 401(k)s, employers are not required to match employee contributions to a 457(b) Plan. This means that you'll be solely responsible for funding your own retirement savings.

What Are Some Alternatives to an Empower Retirement 457(b) Plan?

There are a few alternatives to an Empower Retirement 457(b) Plan.

Roth IRA

One option is to invest in a Roth IRA. This type of retirement account allows you to contribute after-tax dollars, which means you won't have to pay taxes on the money when you retire.

Traditional IRA

Another option is to invest in a traditional IRA. This type of account allows you to contribute pre-tax dollars, which means you'll pay taxes on the money when you retire.

401(k)

Lastly, you could invest in a 401(k) plan. This type of retirement account allows you to contribute both pre-tax and after-tax dollars. You'll also be able to take advantage of employer matching contributions, if your company offers them.

How Do You Open an Empower Retirement 457(b) Plan?

You can open an Empower Retirement 457 plan through your employer. If your employer doesn't offer this retirement savings plan, you can still set one up on your own. The process is pretty simple and only takes a few minutes.

First, you'll need to find a financial institution that offers Empower Retirement 457 plans. There are a few different options, so shop around and compare fees, benefits, and investment options before choosing one.

Once you've found a provider, you'll need to open an account. This can usually be done online or over the phone. You'll need to provide some basic information like your name, address, and Social Security number.

What is The Minimum Amount Required to Open an Empower Retirement 457(b) Plan?

The minimum amount required to open an Empower Retirement 457(b) Plan is $25. This is a very small amount compared to other retirement plans, which can require hundreds or even thousands of dollars to get started.

What Are The Empower Retirement 457(b) Plan Contribution Limits?

The beauty of the 457 plan is that there are no contribution limits. You can contribute as much money as you want, up to the maximum allowed by the IRS. This makes it an ideal retirement savings vehicle for high-income earners.

What Are The Eligibility Requirements for an Empower Retirement 457(b) Plan?

The Empower Retirement 457(b) Plan is available to employees of state and local governments and tax-exempt organizations. Participants must be at least 18 years old and have a valid Social Security number. They must also be employed by the eligible organization on the date they enroll in the plan.

Do You Pay Taxes On an Empower Retirement 457(b) Plan?

You may be wondering if you have to pay taxes on your Empower Retirement 457(b) Plan. The answer is yes, you do have to pay taxes on your plan.

However, the amount of taxes you pay will depend on how much money you have in your account and what type of investment you are making.

For example, if you are invested in a stock, you will have to pay capital gains taxes on any profits you make. If you are invested in a bond, you will have to pay income taxes on any interest you earn.

When Can You Withdraw Money From an Empower Retirement 457(b) Plan?

You can withdraw money from an Empower Retirement 457(b) Plan at any time, but there may be penalties for early withdrawal. Check with your plan administrator for more information.

How Does an Empower Retirement 457(b) Plan Compare to a 401K?

There are a few key ways in which a 457 plan differs from a 401K. For one, 457 plans are only offered by state and local government employers, as well as some non-profit organizations.

Additionally, the contribution limits for a 457 plan are generally much higher than those of a 401K. Finally, withdrawals from a 457 plan are subject to different rules than those of a 401K.

What Assets Are Available With an Empower Retirement 457(b) Plan?

The Empower Retirement 457(b) Plan offers a wide range of investment options, including stocks, bonds, mutual funds, and ETFs.

You can also choose to invest in a self-directed brokerage account. With so many options available, you can create a portfolio that meets your specific goals and risk tolerance.

Why Do People Use an Empower Retirement 457(b) Plan?

There are a few key reasons why people might want to use an Empower Retirement 457(b) Plan. The first reason is that it can be a great way to save for retirement.

This is because the money in the account grows tax-deferred, which means that you won't have to pay taxes on it until you withdraw it in retirement.

Another reason people use an Empower Retirement 457(b) Plan is that it can be a great way to get started saving for retirement.

This is because you can start contributing to the account with just a few hundred dollars. And, over time, the account can grow to be worth tens of thousands of dollars.

Finally, people use an Empower Retirement 457(b) Plan because it can be a great way to get started saving for retirement.

This is because you can start contributing to the account with just a few hundred dollars. And, over time, the account can grow to be worth tens of thousands of dollars.

Does an Empower Retirement 457(b) Plan Accept Rollovers?

An Empower Retirement 457(b) Plan does accept rollovers from other eligible retirement plans, such as a 401(k) or 403(b). This can be a great way to consolidate your retirement accounts and keep track of your investments in one place.

You may also be able to take advantage of lower fees with a Empower Retirement 457(b) Plan. When you roll over your account, you may be able to keep the same investment options and potentially lower your overall fees.

If you're thinking about rolling over your retirement account, be sure to talk to a financial advisor to see if it's right for you. They can help you compare the fees and investment options of different plans to find one that best suits your needs.

How Long Does It Take to Transfer to an Empower Retirement 457(b) Plan?

The good news is that it doesn't take very long to transfer your account to Empower Retirement. The process is typically completed within a few days. However, there are a few things that you need to keep in mind.

First, you will need to contact your current plan provider and request a transfer form. Once you have the form, you will need to fill it out and send it back to Empower Retirement.

The form is pretty straightforward, but if you have any questions, you can always contact Empower Retirement's customer service department. They're more than happy to help you through the process.

Once your form is received and processed, your account will be transferred over to Empower Retirement. You will then be able to start taking advantage of all the great features and benefits that they have to offer.

How Do You Put Money Into an Empower Retirement 457(b) Plan?

You can contribute to your 457 plan in a few different ways. The most common way is through payroll deduction, which allows you to have a portion of your paycheck automatically deposited into your account.

You can also make one-time or periodic contributions by writing a check or authorizing an electronic funds transfer from your checking or savings account.

If you're self-employed or own your own business, you can make contributions to your 457 plan via a SEP IRA or SIMPLE IRA. And if you have money in another retirement account, such as a 401(k) from a previous job, you may be able to roll it over into your 457 plan.

Can You Open an Empower Retirement 457(b) Plan For a Child?

The simple answer is yes, you can open an Empower Retirement 457 plan for a child. The process is the same as opening one for an adult and there are no special requirements. All you need is the child's Social Security number and birth date.