In addition to your employer's retirement plan, you may be able to open your own individual retirement accounts. Two options include:
- Roth IRA. You don't get a tax break up front on the money you invest in a Roth IRA, but all of your contributions and your fund's earnings will be income-tax free as long as you meet the program's requirements for withdrawing money during retirement. Roth IRAs have rules on income eligibility and annual contribution limits, so it's a good idea to check with a Personal Financial Representative before planning contributions or withdrawals.
- Traditional IRA. Like a 401(k), you may earn an annual tax deduction on the money you invest in this account. Your money is taxed later, when you withdraw it during retirement. If you switch jobs, you may be able to roll over all or part of your work 401(k) to a traditional IRA.
In both of these accounts, you can typically choose to invest in individual stocks, bonds or mutual funds. Through Allstate, you'll have access to mutual funds from more than 20 financial companies, allowing you to diversify your retirement investment plan.