The MetLife unit of MetLife Inc. said Tuesday that it was introducing a Roth offering through 403(b) plans as an option for customers to diversify tax risk and potentially enhance after-tax savings in retirement.
The option is available through MetLife Resources, the company's distribution arm for its 403(b) business. The company said that educational support is available through MetLife Resources to help investors understand their choices regarding its products.
Roth 403(b) contributions are made on an after-tax basis, and any increase in account values is tax-free. Roth contributions and earnings are not taxed when they are withdrawn, provided that the withdrawal is after the participant is 59 and a half, has died, or become disabled, and that the withdrawal comes at least five years after the participant's first Roth 403(b) contribution.
MetLife Resources, a division of the New York insurance company, sells retirement plans and other financial services to health-care, educational, and nonprofit organizations.
