Top Retirement Planning and Banking FAQs

401(k) accounts have several benefits, including helping you save for retirement and saving money on taxes. With a tax-deferred 401(k), federal and state income taxes are withheld from the amount a worker contributes. That means a 401(k) saves a worker money today because the money that goes into their 401(k) lowers their taxable income, so they pay less income tax.

To start a 401(k) account, check with your employer to see if they offer a 401(k) account. 401(k) accounts are employer-sponsored, meaning you can only open one through your employer.

If you are a business owner, Fifth Third can help you start a 401(k) retirement plan for your employees. Learn more about Fifth Third’s retirement plans for employees.

In 2020, the most an individual can contribute to their 401(k) account is $19,500 annually. It is recommended that you contribute at least enough to earn the full match that your employer offers.

If you’re wondering how to start planning for retirement, contact a Fifth Third Financial Advisor to learn about your options. User our Retirement Calculators to estimate how much you might need for retirement.

Yes, you can open a retirement savings account. Fifth Third offers Individual Retirement Accounts (IRAs) including Roth IRAs and Traditional IRAs. You can also open a 401(k) account if your employer offers one. Learn more about Fifth Third IRAs.

How much savings you’ll need for retirement depends on several factors including when you plan to retire, how much of your current income you’d like to maintain, and how much you plan to rely on Social Security. Use our Retirement Calculators to estimate how much you should save.

Use our Retirement Planning Calculators to find out if you’re saving enough, how much you can contribute yearly, and more.

Yes, annuities can be either fixed or variable. With fixed income annuities, your balance is safer than variable annuities because the insurance company assumes the investment risk. They are guaranteed to earn a fixed rate of interest and can provide a stream of income for the rest of your life or for a set period of time.

Variable annuities do not guarantee a rate of return and may carry a higher degree of risk because they can invest in stocks, bonds, or money market securities. The investment performance is based on the portfolios chosen by the owner. The investment return of variable annuities can fluctuate.

The earliest age at which you can file for Social Security retirement benefits is 62. Certain benefits like survivor’s benefits, disability and dependent benefits can be claimed earlier than age 62. Each year that you wait after age 62 results in a higher benefit with the maximum benefit accruing to age 70. The benefit level adjusts monthly. Contact a Financial Advisor to discuss your options.