Investor Education

Investor Education

Saving for Retirement

Saving for Retirement

Today, people are living longer than ever before—and we have higher expectations for our quality of life as well. But quality of life is more than just financial; it’s also peace of mind. With the long-term health of Social Security benefits in question, it’s more important than ever to have a retirement savings plan in place. Whatever type of retirement plan you choose, Wasatch Funds can be part of that plan.

In this section:

Traditional IRA

  • Tax deferred
  • Offers an up-front tax deduction
  • Contributions are tax deductible (in some cases)
  • Contribute up to $5,500 annually ($6,500 if you’re 50 or older)
  • For retirement purposes only (a 10% tax penalty may apply to withdrawals before age 59-1/2)

Learn more about Traditional IRAs

Roth IRA

  • Can provide tax-free income during retirement
  • Pay taxes on contributions going in, withdraw funds tax free after retirement
  • Qualified distributions are tax free1
  • Contribution limits are determined by income
  • For retirement purposes only (a 10% tax penalty may apply to withdrawals before age 59-1/2)
Learn more about Roth IRAs 


  • A company retirement plan for businesses with 100+ employees
  • Less expensive and less complex than 401(k) management
  • Employees may annually contribute up to $12,000 or 100% of salary, whichever is lower
  • Employees age 50+ may contribute an extra $2,500 per year
  • For retirement purposes only, a 10% tax penalty may apply to withdrawals before age 59-1/2. A 25% penalty may apply to withdrawals in the first two years.

Learn more about SIMPLE IRAs

403(b) custodial account

  • A retirement plan for employees of non-profit organizations (including public schools, churches, etc.)
  • Employees may make pre-tax contributions
  • Employees may annually contribute up to $17,500 plus cost-of-living (COLA) adjustments
  • Employees age 50+ may contribute an extra $5,500 plus COLA increases per year
  • Qualified distributions are tax free
  • Employees may take qualified loans

Learn more about 403(b) plans

401k plan

Wasatch Funds are available to add to any 401k plan. If Wasatch Funds are not currently part of your company’s 401k plan and you would like to add them, please talk to the 401k administrator at your company.


We can help walk you through the process of considering and opening a retirement account. Click here to view our Traditional/Roth IRA Kit or SIMPLE IRA Kit.

1A distribution is qualified, and thus not penalized, if it is taken at least five years after you established your first Roth IRA and when you are at least age 59½, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased.


If you leave an employer that was providing a retirement plan such as a 401(k) or 403(b) plan, you have the option to rollover the funds you have saved into an IRA account. There are several advantages to rolling over funds:

  • If you make a direct rollover (or an indirect rollover during the allotted time), you will not pay taxes until you take distributions at retirement age
  • With most employer-sponsored plans, you are limited to the investment vehicles it offers. When you rollover to your own IRA, you can choose your own investment options.
  • It’s as simple as filling out a few forms—Wasatch Shareholder Services can help

A direct rollover means that the funds from your employer-sponsored account move directly into your new IRA account. There is no taxation, no time limit, and no temptation to spend the money because it’s never actually in your hands.

An indirect rollover involves your employer cashing out your account and sending you a check. There is a 20% mandatory tax penalty and the rollover must be completed within 60 days. Not only is there a significant loss to your savings, some people find it more difficult to reinvest the money once they’ve got it in a checking or savings account—and that can put an even bigger dent in a retirement savings plan.

Learn more about rolling over a retirement plan in our retirement kits. Click here to download retirement kits and access account rollover forms.