great-west lifetime advantage ira" solution - Dcprovider.com

DIFFERENCES BETWEENTRADITIONAL AND ROTH IRASBoth traditional IRAs and Roth IRAs offer tax-advantaged growth potential,and both types of IRAs are subject to annual contribution limits. However,traditional IRAs and Roth IRAs are different.FEATURE TRADITIONAL IRA ROTH IRAAge limit oncontributionsYou cannot contribute after theyear you reach age 70½.There is no age limit.Deductibility ofcontributionsYou may be able to deduct yourcontributions depending on yourincome, tax-filing status, eligibilityfor an employer-sponsoredretirement plan, and whether youreceive Social Security benefits.You cannot deduct contributions.Tax treatmentof distributionsDistributions are taxed asordinary income, but if you madenondeductible contributions, not allof the distribution is taxable. A 10%early withdrawal penalty may apply towithdrawals made prior to age 59½.Distributions are not taxed if you havebeen invested in the account for at leastfive years and the distribution is madedue to your disability, death or after youhave reached age 59½.RequireddistributionsYou must begin receiving requiredminimum distributions by April 1of the year following the year youreach age 70½.There are no required distributions ifyou are the original owner.Incomelimit oncontributionsThere is no income limit.For 2014, you cannot contribute if yourmodified adjusted gross income isover $129,000 for single and head ofhousehold filers or $191,000 for jointfilers. Special limits apply if you aremarried but filing separately. Please seeIRS Publication 590 for more details.Source: IRS Publication 590You may contribute to both a traditional IRAand a Roth IRA in the same year. However,your combined contributions cannot exceedthe annual limit set by the federal government.For more information, see IRS Publication 590or consult a financial advisor.NEED HELP?Please consult with your financialadvisor or call the Retirement ResourceCenter at (877) 804-6257 to speak to aretirement associate 32

FUNDING AN IRAThere are several ways to consider funding an IRA:1. ROLL OVER MONEY FROM A PREVIOUSEMPLOYER’S RETIREMENT PLAN. 4When you leave a job and have accrued savings inyour employer-sponsored qualified retirement plan,consider the following options:Roll the money into a traditional IRA – You may rollover all or part of your account balance accumulatedon a pre-tax basis to a traditional IRA. This providescontinued tax deferral and may offer new investmentchoices and greater flexibility than the group plan.Roll the money into a Roth IRA – A rollover of yourdesignated Roth savings within a 401(k), 403(b), orgovernmental 457(b) plan to a Roth IRA is not subjectto taxes. You also may be able to roll over pre-taxaccumulations from a previous employer’s retirementplan into a Roth IRA; however, the amount of therollover is subject to ordinary income tax for thattaxable year. For more information, please consult yourfinancial advisor.2. CONSOLIDATE YOUR OTHER IRASINTO A SINGLE IRA.You may consolidate other IRAs into one IRA tosimplify account tracking and management. When youconsolidate two or more accounts into a single IRA, youincrease your overall account balance, which may lowerasset-based fees for certain features (a traditional IRAand a Roth IRA are treated as two separate accounts).You may be able to continue contributing to yourconsolidated IRA(s).NEED HELP?If you have questions regardingthe rollover process, please callthe Retirement Resource Center at(877) 804-6257 33. START A NEW IRA WITH ANINITIAL AMOUNT (AND CONTINUECONTRIBUTING IF YOU WISH).Once you set up your IRA, you may contribute toyour account as long as you have earned income. (Ifyou file jointly, you or your spouse must have earnedincome.) With a traditional IRA, you may continue tocontribute until age 70½. With a Roth IRA, you may makecontributions regardless of your age; however, yourcontributions may be subject to income limits.For detailed information regarding contributions andother options, please see IRS Publication 590 or consultwith your financial advisor.4 You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options.3

INVESTMENT OPTIONSGreat-West Lifetime Advantage IRA solution provides a broad array ofinvestment options.With more than 100 funds available, including risk-based, asset allocation portfolios, as well as a seriesof target date funds, you’ll have a choice of investment styles and objectives from a variety of leadinginvestment managers.Asset allocation can help you manage risk by spreading your investments among different asset classes, such asstocks, bonds and cash equivalents.While you can invest in any of Great-West Lifetime Advantage IRA solution’s other investment options at the sametime, selecting just one risk-based Great-West Profile Fund or one Great-West Lifetime Fund fund may be all youneed—or want. 5The investment options available to you range from conservative to aggressive. When you choose one of theGreat-West Profile Funds or Great-West Lifetime Funds, you get instant diversification and automatic rebalancing,which means that the fund’s asset allocation is adjusted periodically to ensure market forces don’t cause it to getoff track from its intended investment objective. 6 You should still regularly review your investment options, risktolerance and goals, and make adjustments if your personal circumstances change.NEED HELP?Please consult with your financial advisor or call the Retirement ResourceCenter at (877) 804-6257 to speak to a retirement associate 35 Asset allocation and balanced investment options are subject to the risks of the underlying funds, which can be a mix of stocks/stock fundsand bonds/bond funds. For more information, see the prospectus and/or disclosure documents.6 Diversification, rebalancing and asset allocation do not ensure a profit and do not protect against loss in declining markets.4

INVESTMENT OPTIONS (CONTINUED)GREAT-WEST PROFILE FUNDSThe risk-based Great-West Profile Funds can be selectedin correlation with your investor style, with options rangingfrom conservative to aggressive. The Great-West ProfileFunds are professionally managed by qualified investmentexperts who analyze the underlying funds in each assetclass quarterly, select the investment mix, monitorperformance, and make adjustments annually.When you choose one of these portfolios, you get instantdiversification and automatic rebalancing—meaning that thefund is adjusted periodically if market forces cause it to getoff track from its intended investment objective. You shouldstill regularly review your investment options, risk toleranceand goals as well as your intended date of retirement,making adjustments if your personal circumstances change.The Great-West Lifetime Funds are designed to fit allthe stages of your life—whether you’re 20 years old or20 years into retirement.GREAT-WEST SECUREFOUNDATION ®What would you say if we offered to help you secure aguarantee of retirement income for life?Great-West SecureFoundation (SecureFoundation)offers a new approach to the traditional trade-offbetween protecting retirement income and stayinginvested in growing markets because it:»»Protects your retirement income when the marketgoes down 7»»Allows you to benefit when the market goes up»»Provides you a retirement income for life 8GREAT-WEST LIFETIME FUNDSWith the Great-West Lifetime Funds, you get an assetallocation strategy designed to adjust over a lifetime,providing you with a diversified mix of investments spreadacross multiple asset classes in a single investment option.Each Great-West Lifetime Fund employs a differentcombination of investments among the underlying funds,gradually shifting its emphasis from more aggressiveinvestments to more conservative ones as you approachretirement. The date in a Great-West Lifetime Fund representsan approximate date when an investor would expect tostart withdrawing their money. By choosing the Great-WestLifetime Fund closest to your anticipated retirement date,you invest in a single fund that can help address your needfor retirement readiness at all stages of life—before, at, and inretirement. The principal value of the funds is not guaranteedat any time, including the target date.The Great-West Lifetime Funds include these core features:»»A lifetime investing approach»»Expert consultation from Ibbotson Associates, Inc.»»A wide array of leading investment managers»»Dynamic portfolios with over 20 underlying funds»»A blend of active and passive investment managementSecureFoundation is a contingent deferred annuitycontract or certificate issued by Great-West Life& Annuity Insurance Company (GWL&A). TheSecureFoundation contract is GWL&A’s promise toprovide a payment of guaranteed income subjectto the terms and conditions of your contract orcertificate and claims paying ability of GWL&A.SecureFoundation is only available through thepurchase of a Great-West SecureFoundation fund.Great-West SecureFoundation funds are subject tothe risks of their underlying funds.SecureFoundation is not available in NewYork, and may not be available in all states.For more information and to check availability,visit www.ira.gwrs.com.Please consider the investment objectives, risks, feesand expenses carefully before investing. For this andother important information, you may obtain mutualfund prospectuses, and/or additional disclosuredocuments including the Guarantee DisclosureStatement for Great-West SecureFoundation fromyour registered representative or visit www.ira.gwrs.com. Read them carefully before investing.7 SecureFoundation’s guaranteed income benefit does not guarantee the investment performance of the applicable Great-West SecureFoundation Fund. NeitherGreat-West Funds, Inc. nor Great-West Capital Management, LLC is responsible for any payments under SecureFoundation’s guaranteed income benefit.8 Excess Withdrawals can deplete the Covered Fund Value and affect your potential guarantee.5

ADVISORY SERVICESWhether you choose a traditional or Roth IRA, Reality Investing ® AdvisoryServices (Advisory Services) is included with Great-West Lifetime Advantage IRAsolution. Advisory Services, provided by Advised Assets Group, LLC (AAG), afederally registered investment adviser, offers strategies for retirement planning,including Managed Account, Online Investment Advice and Online InvestmentGuidance services.MANAGED ACCOUNTThe Managed Account option is designed for theDo-It-For-Me SM Investor who prefers professionalportfolio management. AAG provides regular accountmonitoring and an annual portfolio review. In addition,the customization and personalization features allowfor building an IRA portfolio that considers your:»»Contribution rate and salary»»Desired retirement age and retirement income»»Social Security benefits estimate and otheroutside assetsThe customization components can be updated atany time and help ensure effective portfolio design—during both the accumulation and distribution phasesof your life. The Managed Account service charges afee based on your account balance and is deductedfrom your account quarterly.ONLINE INVESTMENT ADVICE ANDONLINE INVESTMENT GUIDANCEOnline Investment Advice is for the Help-Me-Do-It SM Investor who prefers to manage his or her ownaccount with validation from a financial expert. Itprovides you with a fund-specific recommendationbased on the investment lineup available as part ofGreat-West Lifetime Advantage IRA solution. OnlineInvestment Advice charges a flat fee that is deductedfrom your account on a quarterly basis.Online Investment Guidance is for the Do-It-Myself SM Investor. It’s a free service that providespersonalized asset allocation assistance, but notspecific fund recommendations.Please see the enclosed Fees and Minimums sheetfor a complete description of the fees associated withthe Managed Account service and Online InvestmentAdvice. There is no guarantee that participation inAdvisory Services will result in a profit or that youraccount will outperform a self-managed portfolio.Please consult with your financial advisor beforesigning up for this service.NEED HELP?Please consult with your financial advisor or call the Retirement ResourceCenter at (877) 804-6257 to speak to a retirement associate 36