Tax-Sheltered Annuity
New 403(b) Rules
Beginning January 2009, new IRS regulations required many employers to take on unfamiliary administrative responsibilities and an expanded compliance role. It's important that school district union leaders make themselves aware of this added level of oversight since it could ultimately impact the number of 403(b) options made available to employees in the future.
Now, employers have an expanded role and will need to find the resources to manage new responsibilities. School districts and other nonprofit employers have historically been held accountable for ensuring employees did not over-contribute to the 403(b). With the new regulations that became effective January 1, 2009, however, employers must also take a more active role in monitoring loans, hardship distributions and exchanges. In addition, employers must also have a written plan in place by December 31, 2009.
In addition, employers face new universal availability requirements in terms of where and how the plan is offered. Employers will have an obligation to let workers know about their ability to enroll in the plan and must document how that notification takes place.
MetLife has prepared materials to help employers become more familiar with the various 403(b) changes. Click here to go to their web site and learn more, or contact Chris Burnes of MetLife Resources at 781.267.0132. In addition, MetLife can host a series of free education seminars to help employees at every stage of life to set goals, take full advantage of their retirement savings plan and invest toward their goals. Click here to learn more.
Start NOW to prepare for a financially secure future
Whether retirement is a long way off or just around the corner, a 403(b) tax-sheltered annuity (TSA) can play an important role in achieving your financial goals. A TSA allows educators like you to save for retirement by setting aside a portion of their pay on a pre-tax basis. Better yet, the assets you accumulate in your TSA may later provide retirement income you can't outlive1. It’s the smart way to save for retirement. Advantages of contributing to a TSA include: - Federal income tax deferral
- Convenient payroll reduction
- A range of funding choices
- Loan options
In 2009, federal tax law allows you to contribute up to $16,500 to your TSA account. In addition, you may be eligible to contribute up to an additional $5,500 if you are age 50 or older and up to an additional $3,000 if you have worked for the same employer for at least 15 years.
To learn more, call MetLife at 800.343.4307.
MTA/TSA Presentation
to MTA Retireds
FREE workshops and needs analysis
Fully-trained and licensed MetLife financial services representatives are available throughout the Commonwealth who can provide members with a free no-obligation Financial Needs Analysis during a confidential meeting. MetLife representatives also work with MTA Benefits in conducting informational financial workshops throughout the school year – at no cost to MTA members.
MTA Benefits and its licensed insurance agency have contracted exclusively with MetLife to offer TSA products to MTA members. MetLife can help get you started. To learn more about the TSA Program, call MetLife at 800.343.4307, ext. 1816.
How much is enough?
How much money will you need to enjoy a financially secure retirement? The answer may surprise you. The MetLife Web site offers a variety of easy-to-use retirement savings tools to help you plan for your golden years. Click here to test your knowledge by taking a Retirement IQ quiz.
If you are already a participant in the MTA-endorsed TSA program, click one of the following links to access your account using the MetLife Web site.
Click here for MetLife Financial Freedom Select® variable annuity account information.
Click here for T-Flex and Universal Annuity variable annuity account information.
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1As long as a life annuity is selected.
Withdrawals from 403(b) annuity contracts prior to age 59 1/2 are prohibited unless certain conditions are met. Where permitted, withdrawals are subject to a 10% tax penalty and ordinary income tax.
For any tax-qualified account, e.g. 403(b), the tax deferred accrual feature is provided by the tax-qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring an annuity contract within a qualified plan, such as the death benefit.
Under an agreement with MTA Benefits and its licensed insurance agency, MetLife has been exclusively authorized to offer their tax sheltered annuity products to MTA members and their employee groups. MTA Benefits provides marketing services on behalf of MetLife to promote the annuity products to MTA members and their employers, and MetLife pays MTA Benefits a fixed annual marketing fee for its services, which fee is not based on the volume of sales or the amount of assets invested in the tax-sheltered annuity products. You may wish to take into account this agreement and arrangement, including the fee paid, when considering and evaluating the MetLife tax-sheltered annuity products. You may also wish to consider competitive products and their administrative fees before making your decision. MTA and MTA Benefits are not affiliated with MetLife.
Neither MTA nor MTA Benefits is a registered broker-dealer. All securities brokerage services are performed exclusively by MetLife broker-dealers and not by MTA or MTAB.
Circular 230 Disclosure: The information contained in this Web site concerning Federal tax issues is not intended to (and cannot) be used by anyone to avoid IRS penalties. This Web site supports the sale of insurance, annuity and other financial products and services. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife and its agents and representatives may not give legal or tax advice. Any discussion of taxes in this material or related to this material is for general information purposes only and does not purport to be complete or to cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.
Prospectuses for the MFFS and UA variable annuities and for the underlying portfolios are available from your registered representative. The variable annuity contract prospectus contains information about the contract's features, risks, charges and expenses. The investment objectives, risks, and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Please read the prospectuses and consider the information carefully before investing. Product availability and features may vary by state.
There is no guarantee that any of the variable investment options in these products will meet their stated goals or objectives. The account value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. All product guarantees are based on the claims-paying ability and financial strength of the issuing insurance company.
Like most annuity contracts, MetLife contracts contain exclusions, limitations, reduction of benefits, surrender charges and terms for keeping them in force. Your representative can provide you with costs and complete details.
MetLife Financial Freedom Select is issued by Metropolitan Life Insurance Company (MLIC), New York, NY 10166, on Policy Form G.FFS (08/02) and distributed by MetLife Investors Distribution Company (MLIDC), (Member FINRA), Irvine, CA 92614. T-Flex and Universal Annuity are issued by MetLife Insurance Company of Connecticut (MICC), 1300 Hall Boulevard, Bloomfield, CT 06002. Product guarantees are subject to the financial strength and claims paying ability of the issuing insurance company. Securities offered by MetLife Securities, Inc. (MSI) (member FINRA/SIPC). MLIC, MICC, MLIDC and MSI are affiliates. MTA is a separate entity.
Jamie Valente, Education Association of Plymouth and Carver
”MetLife made it easy for me. Chris Burnes, my MetLife representative, helped me roll over a retirement account from a previous job into an MTA tax-sheltered annuity. I had not done this before, and Chris made things clear to me so I understood the tax advantages and investment possibilities. He helped me to feel confident that I’d reach my financial goals for retirement.“
Deima Torna, Educational Association of Worcester
”The TSA program provides financial security for my future. The service is exceptional and information is presented in a way that is easy to understand.“
Frank Coutinho, Middleboro Education Association
”When I switched careers, moving from the retail world to teaching, I recognized the need
to supplement my retirement income since
I would not be able to collect all of my Social Security benefits as a teacher. I signed up for a tax-sheltered annuity through MTA Benefits, realizing how much my money could compound and grow under this
plan. By having the contribution taken out of my paycheck, I don't even notice it's gone. At night I teach a consumer math program and tell young people just how important it is to save — it will provide them with the financial security they need at retirement."
