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Retirement Flyer Retirement Calculator Create your accountRetirement Plans
Building financial security for the future is just as important as protection for today. A 401(k) allows you to reserve money for retirement through pre-tax deductions from your paycheck and tax-deferred earnings.
Whether retirement is a lifetime away or right around the corner, Nextep's retirement plans can help you achieve your retirement goals.
Get started by calculating how much you may need to retire:
Retirement Calculator
Retirement Plan Features
- Excellent support with award-winning assistance
- Plan sponsors have various options when setting up the company's plan parameters
- Option to set automatic deferral increases
- Participants have the option to change elections anytime
Retirement Education & Resources
Traditional vs. Roth 401(k)
You have the choice between traditional and Roth 401(k) plans. The main difference is how they're taxed:
Traditional 401(k)
- Upfront tax break: Your contributions are tax-deferred, which reduces your current taxable income.
- Taxes in retirement: You'll pay regular income taxes on the money you withdraw later.
- Withdrawal rules: You'll owe regular income taxes on any money you take out, typically starting after age 59½.
- Best fit: This option usually works best for higher-income earners who want immediate tax relief.
Roth 401(k)
- No upfront tax break: Contributions are taken after tax. You build your account using after-tax dollars today.
- Tax-free retirement: Your withdrawals and earnings are completely tax-free during retirement.
- Withdrawal rules: To avoid taxes, you must hold the account for at least five years, and take the money after age 59½, death, or disability.
- Best fit: This option typically favors lower-income earners who want to maximize their tax savings in the future.
Answers to Your Questions
A Traditional 401(k) allows you to reserve money for retirement through pre-tax deductions from your paycheck and tax-deferred earnings until the funds are withdrawn at retirement. Roth 401(k) plans do the opposite; taxing the funds you contribute to your retirement account up front, and then you can later withdraw them with no taxes during retirment.
Nextep's retirement plans are administered by Empower, a trusted carrier serving more than 20 million people.
Your company's benefit plan may be through a different carrier, though. While most of the info shown here applies to all rertirment plans, the info on this page is true specifically to Empower's retirement accounts. Please double check with your specific retirement plan and carrier to confirm details.
Your company's benefit plan may be through a different carrier, though. While most of the info shown here applies to all rertirment plans, the info on this page is true specifically to Empower's retirement accounts. Please double check with your specific retirement plan and carrier to confirm details.
Calculating your retirement needs is a challenging and personal task. Get started by using Empower's retirement calulator:
Retirement Calculator
For more in-depth financial planning, contact a financial advisor.
Retirement Calculator
For more in-depth financial planning, contact a financial advisor.
Check your company's age and eligibility requirements. For more details on the plan and fund performance, contact Nextep's retirement plan experts:
Contact a Nextep Retirement Expert
Contact a Nextep Retirement Expert
You can make changes at anytime to your contribution amount, but it may not be immediately reflected on your paycheck. Administrative updates are done on a weekly basis, so your changes will become effective as soon as possible. Fund allocations (how your money is invested) can be changed as frequently as you'd like online.
You may defer as little as 1% from each paycheck. Because financial emergencies happen, you can change your deferral to 0% at any time. When ready, you may resume deferrals on the first of the following month.
Withdrawals may begin at age 59 ½ or older without IRS tax penalties. for loan or hardship, long-term disability or death, or upon termination of employment. Funds withdrawn early are subject to IRS taxation and penalties.
You may initiate an early qithdrawal from your retirement plan for loan or hardship, long-term disability or death, or upon termination of employment. Please note, funds withdrawn early are subject to IRS taxation and penalties. Get more info:
How a Hardship Withdrawal Works
Calculate withdrawal penalties:
Withdrawal Calculator
Hardship withdrawal instructions:
How to Withdraw Early
How a Hardship Withdrawal Works
Calculate withdrawal penalties:
Withdrawal Calculator
Hardship withdrawal instructions:
How to Withdraw Early
A Roth 401(k) works like a traditional plan, except funds are deducted after taxes. Because Roth 401(k) contributions have been taxed, qualified withdrawals at retirement are tax-free.
This calculator from Empower Retirement can help you determine which plan may be best for you:
Pretax vs. Roth Calculator
Read more about Roth versus Traditional 401(k) options:
Pretax vs. Roth Differences
This calculator from Empower Retirement can help you determine which plan may be best for you:
Pretax vs. Roth Calculator
Read more about Roth versus Traditional 401(k) options:
Pretax vs. Roth Differences
At your option, you may be able to consolidate:
Check with your benefits coordinator to learn what types of contributions your current retirement plan will accept.
- Pre- and post-tax dollars from a prior employer’s plan
- IRA assets
- Money from other retirement sources
Check with your benefits coordinator to learn what types of contributions your current retirement plan will accept.
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- Complete open enrollment
- View and present insurance cards at the doctor's office
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Quick Links: Nextep Benefit Plans
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