Empower is a 401(k) provider that offers a range of retirement savings plans and investment options. Their plans are designed to help participants save for retirement and meet their long-term financial goals. Empower offers a variety of features and benefits, including low fees, personalized investment advice, and access to financial planning tools. The company has a strong track record of performance and is committed to providing excellent customer service. With its robust offerings and commitment to participant success, Empower is a solid choice for 401(k) plans.
Empower’s Retirement Plan Options
Empower offers a comprehensive suite of retirement plan options to help you meet your financial goals. Whether you’re just starting out or nearing retirement, they have a plan that’s right for you.
401(k) Plans
- Traditional 401(k): Contribute pre-tax dollars and defer taxes until you withdraw money in retirement.
- Roth 401(k): Contribute after-tax dollars and withdraw money tax-free in retirement.
403(b) Plans
- Traditional 403(b): Contribute pre-tax dollars and defer taxes until you withdraw money in retirement.
- Roth 403(b): Contribute after-tax dollars and withdraw money tax-free in retirement.
SIMPLE IRAs
- Contribute up to $15,500 in 2023 ($45,000 if age 50 or older)
- Employer must contribute a matching contribution of up to 3% of your salary
SEP IRAs
- Contribute up to 25% of your net income as an employer
- Deductible by the employer
| Plan Type | Contribution Limits (2023) | Tax Treatment |
|---|---|---|
| Traditional 401(k) | $22,500 ($30,000 if age 50 or older) | Pre-tax contributions, tax-deferred growth, taxable withdrawals |
| Roth 401(k) | $22,500 ($30,000 if age 50 or older) | After-tax contributions, tax-free growth and withdrawals |
| Traditional 403(b) | $22,500 ($30,000 if age 50 or older) | Pre-tax contributions, tax-deferred growth, taxable withdrawals |
| Roth 403(b) | $22,500 ($30,000 if age 50 or older) | After-tax contributions, tax-free growth and withdrawals |
| SIMPLE IRA | $15,000 ($45,000 if age 50 or older) | Pre-tax contributions, tax-deferred growth, taxable withdrawals |
| SEP IRA | 25% of net income | Deductible by employer, tax-deferred growth, taxable withdrawals |
Fees
Empower’s fees are generally in line with industry averages. The average expense ratio for Empower’s target-date funds is 0.68%, which is slightly higher than the industry average of 0.59%. However, Empower offers a wide range of investment options, including index funds and exchange-traded funds (ETFs), which typically have lower expense ratios than actively managed funds.
Investment Choices
Empower offers a wide range of investment choices, including:
- Target-date funds
- Index funds
- ETFs
- Mutual funds
- Stocks
- Bonds
This variety of options allows investors to create a diversified portfolio that meets their individual risk tolerance and investment goals.
| Type of Investment | Expense Ratio |
|---|---|
| Target-date funds | 0.68% |
| Index funds | 0.20% |
| ETFs | 0.15% |
| Mutual funds | 0.50% |
| Stocks | 0.00% |
| Bonds | 0.10% |
Customer Service and Support
Empower Retirement offers a variety of ways to get customer service and support for your 401(k) account:
- Online: Log in to your account at Empower.com to view account balances, make changes to your investments, and get customer service support.
- Phone: Call Empower’s customer service line at 1-800-432-0177 to speak to a representative.
- Email: Send an email to Empower’s customer service team at customer_service@empower-retirement.com.
- Mail: Write to Empower Retirement at P.O. Box 7001, Greenwood Village, CO 80155.
Empower Retirement’s customer service hours are Monday through Friday, 7:00 AM to 7:00 PM MST.
Additional Support
In addition to the customer service options listed above, Empower Retirement also offers the following support resources:
- FAQs: Empower Retirement’s website has a comprehensive FAQ section that can answer many common questions about your 401(k) account.
- Online chat: You can chat with a Empower Retirement representative online at Empower.com.
- Educational resources: Empower Retirement offers a variety of educational resources to help you learn about retirement planning and investing.
Customer Satisfaction
Empower Retirement has a strong reputation for customer satisfaction. The company has received numerous awards for its customer service, including the J.D. Power 2022 U.S. Retirement Plan Participant Satisfaction Study.
| Rank | Award | Year |
|---|---|---|
| 1 | J.D. Power U.S. Retirement Plan Participant Satisfaction Study | 2022 |
| 1 | J.D. Power U.S. Retirement Plan Participant Satisfaction Study | 2021 |
| 1 | J.D. Power U.S. Retirement Plan Participant Satisfaction Study | 2020 |
Comparisons to Other 401k Providers
When evaluating Empower as a 401k provider, it’s essential to compare it to other reputable providers in the industry. Consider the following key areas:
- Investment Options: Compare the breadth and variety of investment options available, including funds from different asset classes (e.g., stocks, bonds, mutual funds) and risk levels.
- Fees: Analyze the expense ratios, management fees, and other charges associated with each provider’s plans. Lower fees can result in higher savings in the long run.
- Customer Service: Assess the level of support provided by each provider, including availability, responsiveness, and expertise.
- Technology Platform: Evaluate the user-friendliness, functionality, and accessibility of each provider’s online platform.
- Employer Features: Consider the features and services that providers offer to employers, such as plan administration, compliance support, and participant education.
Conducting a thorough comparison of these factors will enable you to make an informed decision about the 401k provider that best aligns with your needs and goals.
| Provider | Investment Options | Fees | Customer Service | Technology Platform | Employer Features |
|---|---|---|---|---|---|
| Empower | 4,500+ funds | 0.05% to 0.15% management fee | 24/7 online support, phone, email | User-friendly and intuitive interface | Comprehensive plan administration services |
| Fidelity | 8,000+ funds | 0.03% to 0.07% expense ratio | 24/7 customer support via phone, chat, and video | Advanced trading tools and research capabilities | Personalized retirement planning services |
| Vanguard | 3,000+ funds | 0.04% to 0.16% expense ratio | 24/7 phone, email, and online support | Simplified interface with low minimums | Employer-sponsored financial education programs |
| American Funds | 100+ funds | 0.10% to 0.30% management fee | Limited customer support options | Basic online portal with limited functionality | Specialized investment strategies for different objectives |
Thanks for sticking with me through this deep dive into Empower’s 401k offerings. I know it’s not the most exciting topic, but it’s crucial for securing your financial future. I hope this article has given you the insights you need to make an informed decision about your retirement savings. If you have any further questions or want to stay updated on the latest Empower news, be sure to check back again soon. I’m always here to help you navigate the world of 401ks and retirement planning.