Frequently Asked Questions

We have the answers to get you started!

Quick IRA Actions

Get in touch


Email us 24/7

We're here to help!

Contact Us
Q.

What is the EZ IRA?

The EZ IRA is a retirement savings program integrated with leading payroll partners across the country to encourage employees save through payroll deductions. The program was designed to provide employers a simple enrollment platform which allows employees to can control their contributions through automatic payroll deductions.

Q.

Why should I offer the EZ IRA to my employees?

The EZ IRA is a low cost, easily integrated retirement option with Legg Mason managed mutual funds with access to a personal financial advisor. Additionally several states have begun to institute retirement mandates and the EZ IRA is a great alternative.

Q.

How much does it cost for my company to participate in the EZ IRA?

The annual cost is $200 regardless of the number of employees who enroll which charged at registration and is collected at each anniversary. If you are a member of an approved association or utilize one of our preferred payroll partners, the annual cost is discounted to $100.

Q.

How long does it take to enroll my company?

In less than 5 minutes! We've have made the enrollment as EZ 1,2,3.

Q.

How does the program work?

Enroll your company. Invite your employees to participate. Employees save through payroll deductions.

Q.

Are there other retirement options which allow my company to make contributions for my employees?

Yes. There are other employee benefits available – please ask your representative for more information.

Q.

Who is eligible for the EZ IRA?

Anyone who is eligible for an IRA under the IRS guidelines may participate including any 1099’s, full time and part time employees.

Q.

Is there a minimum employee participation requirement?

There is no minimum participation requirement.

Q.

Can my company make contributions to the EZ IRA on behalf of my employees?

Not under the current IRS individual retirement account options which do not allow third-party contributions.

Q.

How much can I save annually in an IRA?

The Traditional and Roth both allow a maximum of $5,500. An additional $1,000 catch up contribution is acceptable by persons age 50 or older with earned income.

Q.

What is the difference between the Tradition IRA and the Roth?

The Traditional IRA allows you to take a tax deduction in the year of the contribution and grows tax deferred. When you get to retirement any withdrawals are taxable as income after you reach 59 ½.

The Roth is an after tax contribution. The benefit of the Roth IRA is that your contributions grow tax-free and you can make withdrawals 5 years after account inception.

Q.

What are the investment options available through the EZ IRA?

Legg Mason has partnered with the EZ IRA to offer best in class mutual funds over their numerous mutual fund holdings. Legg Mason manages over $732 billion in assets worldwide and has a century of experience.

To learn more: https://www.leggmason.com/en-us/investing/retirement/ez-ira.html

Q.

How is the EZ IRA different than a 401k?

Unlike the traditional ERISA plans like 401k’s, the EZ IRA is a simple retirement option that allows your employees to save for retirement in IRA’s. There is no reporting, no testing, and no cumbersome DOL regulations.

Q.

If I currently offer a 401k should I consider the EZ IRA?

Yes. If you are not making a contribution for your employees through the match or profit sharing option in your 401k this is an excellent way to offer a retirement benefit and save the cost and liability.

Q.

As the employer, do I have fiduciary liability?

No, with EZ IRA, you do not have any fiduciary liability. Therefore, you can offer your employees a retirement benefit and still focusing on normal business operations

Q.

How do I offer EZ IRA to my employees?

1. Sign up your business here through our online portal
2. Enter your employee data
3. The assigned financial advisor will contact you to help your employees with enrollments and financial advice

Q.

What if we no longer want to participate in the EZ IRA program?

You can cancel the program at any time by simply letting your payroll provider know to stop withholding of deductions.

Q.

What is the EZ IRA?

The EZ IRA is a retirement savings program which allows employees to save through automatic payroll deductions, making it an ideal way to begin or compliment your retirement.

Q.

What is an IRA?

IRA stands for Individual Retirement Account which is basically a savings account. The IRA is the account which holds your cash and investments.

Q.

How do I get started?

Visit www.ezira.com or the link provided by your employer, click on the Employee tab and register. You will be required to enter a registration code which should be provided by your employer.

Q.

What if I don’t have a registration code?

Your employer will provide your registration code or you can complete the registration request form or visit the link: https://client.ivezt.com/Account/RegistrationRequest

Q.

When should I start saving for retirement?

The short answer: as soon as possible. The sooner you begin saving, the more time your money can grow. Due to the fact that the earnings are not taxable you are able to reinvest the money as it grows. The time value of money allows your account to grow over time in order to maximize your retirement nest egg.

Q.

How much can I save annually in an IRA?

The Traditional and Roth both allow a maximum of $5,500. An additional $1,000 catch up contribution is acceptable by persons age 50 or older with earned income.

Q.

What is the difference between the Tradition IRA and the Roth?

The Traditional IRA allows you to take a tax deduction in the year of the contribution and grows tax deferred. When you get to retirement any withdrawals are taxable as income after you reach 591/2.

The Roth is an after tax contribution. The benefit of the Roth IRA is that your contributions can grow tax-free and you can generally make withdrawals tax and penalty free after you reach 59 ½.

Q.

How much does the EZ IRA program cost?

An EZ IRA account is only $1.00 per week ($52.00 annually) which is deducted from your account at the end of each quarter.

Q.

Is there a minimum contribution?

There is no minimum contribution and no minimum balance with the EZ IRA program.

Q.

Can I manage my contribution amounts?

Yes. You have complete control over your account to make adjustments to the amount you contribute.

Q.

Are their deadlines each year for making contributions?

Yes. You can contribute to your traditional or Roth IRA at any time during a calendar year, and contributions can be made up to the first deadline for your tax return. Example: IRA contributions for tax year 2016 are due by April 15, 2017.

Q.

Are there benefits to saving through payroll deductions?

Yes. Contributing through payroll deductions means you are dollar cost averaging. This investment strategy can reduce the impact of market volatility. By investing in mutual funds each payroll period allows you to consistently buy an investment regardless of market price. This over time reduces the cost due to fluctuations in the market.

Q.

What are the investment options?

Legg Mason has partnered with the EZ IRA to offer best in class mutual funds over their numerous mutual fund holdings. Legg Mason manages over $732 billion in assets worldwide and has a century of experience.

To learn more: https://www.leggmason.com/en-us/investing/retirement/ez-ira.html

Q.

How do I get help with my investment options?

We understand the complexity of preparing for retirement. We can introduce a financial advisor or you can choose your own.

Q.

What if I change jobs?

The account is yours and stays with you regardless of your employer. You are the owner of your EZ IRA account and can follow you throughout your career.

Q.

What if I had a prior 401k at my last employer?

The EZ IRA allows for rollover from all prior plans. Once you set up your account you complete your distribution paperwork and roll it directly into your IRA. Please consult with your tax adviser or financial advisor for detailed tax implications.

Q.

What is the EZ IRA?

The EZ IRA is a retirement savings program integrated with leading payroll partners across the country to encourage employees save through payroll deductions. The program was designed to provide employers a simple enrollment platform which allows employees to control their contributions through automatic payroll deductions.

Q.

What are the annual contribution limits to the EZ IRA?

The Traditional and Roth both allow a maximum of $5,500. An additional $1,000 catch up contribution is acceptable by persons age 50 or older with earned income.

Q.

Why should I offer the EZ IRA?

This is an excellent option for your clients that do not want to make a participant contribution and do not want the complications/cost of the standard ERISA plans.

Q.

What is the market opportunity?

There are 68 million working Americans that do not have access to a retirement option through their employer. The fact is the traditional retirement plans (ERISA Plans) have become too cumbersome due to regulation, fiduciary liability and cost. Studies have shown that employees saving through payroll is the largest segment of retirement savings.

Q.

What is the status with state retirement mandates?

Currently there are several states that have either adopted laws or are working on legislation that require Employers to offer at a minimum a payroll deduction IRA or face fines and/or penalties. The Federal government and states have realized that the retirement crisis is real and due to the ease of saving through payroll this is the best option to help Americans prepare for retirement.

Q.

If my client currently offers a 401k should I consider the EZ IRA?

Yes. If your clients are not making a contribution for the employees through the match or profit sharing option in the 401k this is an excellent way to offer a retirement benefit and save the cost and liability of ERISA plans. We have found that when the employer of a noncontributory plan has the option to remove the liability/cost of the 401k they have chosen to do so a majority of the time. The cost savings has allowed them to offer other benefits to greatly enhance their employee’s benefit package i.e. medical gap policies, short and long term disability, other voluntary and financial products.

Q.

What are the investment options in the EZ IRA?

Legg Mason has partnered with the EZ IRA to offer best in class mutual funds over their numerous mutual fund holdings. i.e. QS Investors, Royce, Clearbridge, and Western Assets. Legg Mason manages over $732 billion in assets worldwide and has a century of experience.

To learn more: https://www.leggmason.com/en-us/investing/retirement/ez-ira.html

Q.

What are the Share Classes that Legg Mason is offering in the EZ IRA?

The EZ IRA is offering R share and I share mutual funds. The I share is used if you are a Registered Investment Advisor (R.I.A.) and the R share is the standard shares sold as a registered representative. Please not that you need to check with your Broker Dealer to ensure the correct contracts are in place.