Sign in to Your Account

MetLife Solutions Group

Phone: 908-276-9942

Market Watch

Individual Retirement Account

Save for retirement with a MetLife IRA

Contributing to an IRA—or Individual Retirement Account—is a great way to supplement your 401(k) (or other employer-sponsored retirement plan) if you have one; if you don't, an IRA can be key to your retirement savings efforts. Like many employer-sponsored retirement savings plans, an IRA can offer valuable tax advantages, such as tax-deductible contributions and tax-deferred growth of your savings.


An IRA makes sense for you if you want to:

  • Help secure your retirement with tax-advantaged savings

  • Save more than the maximum allowed by your company-sponsored retirement savings plan

  • Have the flexibility to invest in a range of financial products

MetLife Solutions Group offers several IRA strategies and products that can help you build up your retirement savings.

About IRAs:

The federal government established Individual Retirement Arrangements (IRAs) to encourage people to save for retirement. Depending on the type of arrangement, you or your employer (depending on the type of IRA), may set up the IRA at a financial organization such as a financial services firm, bank, credit union, or savings and loan institution.

IRAs allow you to invest your money and let it grow tax deferred, and in some cases tax free. Deferring the payment of taxes on your earnings is a tremendous advantage to you because all of the money that would have been paid as taxes can continue to grow in your retirement plan year after year.


Depending upon your circumstances, you may elect to set up any of the following five Individual Retirement Arrangements:

  1. Traditional IRAs contributions may be tax-deductible (your IRA contribution deduction may be reduced or eliminated if you or your spouse is an active participant in a qualified employer retirement plan and your modified adjusted gross income for your filing status exceeds certain thresholds for the year). Tax-deductible contributions will be deducted yearly and will not be taxed on the money invested—or the gains on that money—until you withdraw the funds, usually at retirement. Non-deductible contributions are also permitted. If you withdraw funds before age 59½, a 10 percent tax penalty may apply. Withdrawals will be taxed as ordinary income.

  2. Roth IRA contributions are made with after-tax dollars, meaning you cannot deduct them from taxable income. Withdrawals are generally free of income tax, provided you withdraw Roth IRA funds after the qualified distribution five-tax-year holding period and satisfy one of the other requirements (e.g., withdrawals occur on or after the Roth IRA owner reaches age 59 1/2 or the owner's death).

  3. Spousal IRA contributions can be made for a spouse who does not work or does not have sufficient compensation (or earned income).

  4. Education IRA (now referred to as a Coverdell ESA) contributions made with after-tax dollars will grow tax-deferred in an education savings account for an under age18 beneficiary and distributions for qualified education expenses are tax-free.

  5. IRA-Based Employer Retirement Plans. In addition to IRA plans that an individual might set up, some employers may have established IRA-based retirement plans for employees. Employer contributions to these plans enhance retirement savings at no cost to the employee. IRA-based employer retirement plans offered by some employers include the Simplified Employee Pension plan (SEP-IRA) and the Savings Incentive Match Plan for Employees (SIMPLE IRA).


Footnote:

MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this information is for general information purposes only and does not purport to be complete or 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 advisors regarding your particular set of facts and circumstances.

Consult the appropriate professional advisor for more complete and current information.