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Planning for individuals

Retirement today looks very different than it did just one generation ago. Taking into account the uncertain future of Social Security, diminishing corporate pensions, inflation and taxes, Americans increasingly have to supplement their retirement income with their own assets. click here
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Here are some striking statistics concerning retirement:

  • Only 18% of Americans said they were “very confident” of having enough money to live comfortably in retirement. (2012)1
  • 51% of the workforce has no private pension coverage3
  • 34% of the workforce has no savings set aside specifically for retirement3
  • For 65% of elderly retirees, Social Security provides the majority of their income. For 36% of them, it provides 90% or more of their retirement income. For 24% of them, it is the only source of retirement income.3
  • Experts say you will need about 80% of your pre-retirement income during your retirement years. It’s up to you to figure out how to reach that 80%. Will your current retirement plans generate the amount of income you will need to live comfortably in retirement? If not, you’re not alone. Fortunately, we can help. At Foresters Financial, our investment approach is designed to help maximize your savings and your retirement income – and minimize your worry.

What retirement options do I have?

After a lifetime of hard work, you deserve a comfortable, secure retirement. Foresters Financial has three types of retirement product options:  

Annuities

  • An annuity is a contract issued by an insurance company that can guarantee2 a steady stream of future income in exchange for a single premium payment or a series of premium payments.
  • As long-term financial vehicles that have the potential to grow tax-deferred during the accumulation phase, annuities can help safeguard against the risk of an individual outliving his or her assets by providing periodic income payments that can be guaranteed2 for life.
  • Click here to learn more about our annuity solutions

Government plans

  • If you are employed by a public school, non-profit group, or charitable organization, you may be eligible for a Foresters Financial 403(b). This traditional 403(b) offers two distinct tax incentives for an account holder: pre-tax contributions and tax-deferred growth. Foresters Financial also offers a Roth 403(b) option, if your employer allows. Roth 403(b)s are tax-advantaged retirement accounts. All contributions are made with after-tax dollars and grow tax-deferred. Unlike a Traditional 403(b)  if you are over age 59½, your distributions will be tax-free.  
  • State and local government employees may be eligible for a Foresters Financial Governmental 457 (b) Retirement Program which also offers pre-tax contributions and tax-deferred growth.  

Individual Retirement Accounts (IRAs)

  • An Individual Retirement Account (IRA) is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis depending on the type of IRA.
  • Unlike 401(k)s, which are accounts provided by your company, the most common types of IRAs are accounts that you, as an individual, open on your own, to supplement your retirement income. Others can be opened by self-employed individuals and small business owners.  

There are two basic types of individual IRAs—Traditional and Roth—each with different advantages.  There are many forms of IRAs – spousal, business IRAs such as SEPs and Simple to name a few. Contact your Foresters advisor/agent to see which one is right for you.

Compare IRAs

Traditional IRA Roth IRA Rollover IRA

   

Overview 

An individual retirement account (IRA) that allows individuals to direct income, up to specific annual limits, toward investments that can grow Tax-deferred. Contributions may be deductible depending on the individual’s earnings.

Overview 

A Roth IRA is an individual retirement account that offers a tax-free income in retirement.

Overview 

A Rollover IRA is a Traditional IRA into which eligible assets can be "rolled over" from a qualified employer-sponsored retirement plan, such as a 401(k) or 403(b).

Income limits 

Anyone under the age of 70½ with earned income or a spouse with earned income is eligible to make contributions to a Traditional IRA. An IRA deduction is phased out (for active participants in an employer plan) for adjusted gross incomes between $61,000 - $71,000 for tax payers filing as single or head of household, $98,000 - $118,000 filing joint and $0 - $10,000 for taxpayers filing as married filing separately.

Income limits 

Roth IRAs have the following income-eligibility restrictions:

  • If you are single, or if you are married and filing your tax returns separately and did not live with your spouse during the year, your annual modified adjusted gross income (MAGI) must be less than $131,000.
  • If you are married and are filing a joint tax return, your MAGI cannot exceed $193,000.

Income limits 

No income limit

Tax incentives 

  • Part or all of your annual IRA contribution may be tax deductible on a federal level.
  • All gains from your IRA, such as capital gains, dividends, or interest, are tax deferred until you make withdrawals.

Tax incentives

  • Contributions into your Roth IRA are not tax deductible, but  withdrawals and distributions are generally tax-free.
  • All investment gains to your IRA account, dividends, or interest are tax-deferred until you make withdrawals, which are generally tax-free.

Tax incentives 

Maintains tax deferred status of assets when rolled over into a traditional IRA

Withdrawal rules 

Traditional IRAs require you to start taking required minimum distributions (RMDs) at age 70 1/2

Withdrawal rules  

Roth IRAs do not mandate withdrawals during the owner’s lifetime.

 Withdrawal rules  

Same as traditional IRA

Educational savings withdrawal 

Withdrawals for college expenses are penalty-free under certain circumstances, with investors paying taxes only on the earnings portion of their withdrawals.

Educational savings withdrawal 

Withdrawals for qualified college expenses are penalty-free. Investors may owe taxes only on the earnings portion of their withdrawals depending on how long the account has been open.

Educational savings withdrawal  

Same as traditional IRA

Features 

  • Part or all of your annual IRA contribution may be tax deductible on a federal level

  • All gains from your IRA, such as capital gains, dividends, or interest, are tax deferred until you make withdrawals.

  • This means more money will be available to generate growth.

Features

  • Contributions into your Roth IRA are not tax deductible, but withdrawals and distributions are generally tax-free.
  • All investment gains to your IRA account, dividends, or interest are tax-deferred until you make withdrawals, which are generally tax-free.
  • This means that while you are in your accumulation phase, more money will be available to benefit from compounded growth.

Features 

Same as traditional IRA

Custodial fees

$15 annual fee.
Fee reductions and waivers may apply. 
Please see the funds Statement of Additional Information for more details.

Custodial fees

$15 annual fee.
Fee reductions and waivers may apply. 
Please see the funds Statement of Additional Information for more details.

 

 Custodial fees

$15 annual fee.
Fee reductions and waivers may apply. 
Please see the funds Statement of Additional Information for more details.

   

1Sources: Employee Benefit Research Institute 2012, The Center for Retirement Research (CRR) and the AARP Public Policy Institute.

2All guarantees are subject to the financial strength and claims-paying ability of Foresters Life Insurance and Annuity Company.

3Social Security Administration Fact Sheet (2015)

For more information about any variable annuity products from Foresters Life Insurance and Annuity Company, you may obtain a free prospectus by viewing or downloading it here, contacting your Representative, or calling 800 832 7783. You should consider the investment objectives, risks, fees or charges, and expenses carefully before you purchase a policy. The prospectus contains this and other information, and all applicable prospectuses should be read carefully before you invest or send money. These products are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Annuities are issued by Foresters Life Insurance and Annuity Company, 40 Wall Street, New York, NY 10005, 800 832 7783 and distributed by Foresters Financial Services, Inc., 40 Wall Street, New York, NY, 10005, 800 423 4026

For more information about any of the First Investors Funds or variable insurance products from Foresters Life Insurance and Annuity Company, you may obtain a free prospectus by downloading it from our website, contacting your registered representative, or calling 800 423 4026. You should consider the investment objectives, risks, fees or charges, and expenses carefully before investing. The prospectus, or in the case of a variable insurance product, both its contract and underlying fund prospectus, contains this and other information, and all applicable prospectuses should be read carefully before you invest or send money. An investment in one of these products is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

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