If you're looking for a retirement plan that offers a lot of investment options and flexibility, you may want to consider a MetLife 457(b) Plan. This plan is offered through MetLife and allows employees to save for retirement on a tax-deferred basis.
In this guide, we will provide an overview of the benefits and features of the MetLife 457(b) Plan, as well as reviews from current users. We'll also compare fees and ratings to help you decide if this is the right retirement plan for you!
MetLife 457(b) Plan - Reviews, Benefits, Fees & Ratings Table of Contents
What is a MetLife 457(b) Plan?
A MetLife 457(b) Plan is a retirement savings plan that offers employees of eligible organizations the ability to save for retirement on a tax-deferred basis.
Employees can contribute to their MetLife 457(b) Plan through payroll deductions, and the funds in the account grow tax-deferred until they are withdrawn at retirement.
How Does a MetLife 457(b) Plan Work?
A MetLife 457(b) Plan works by having employees contribute a portion of their paycheck into the account.
The money in the account is then invested and can grow tax-deferred until it is withdrawn. When employees retire or leave their job, they can take the money out of the account without having to pay any taxes on it.
What Are The Key Features of a MetLife 457(b) Plan?
There are a few key features of the MetLife 457(b) Plan that make it an attractive option for retirement savings.
First, there is no vesting period, which means that you can start withdrawing funds as soon as you're eligible.
Secondly, there is no limit on how much you can contribute each year, which makes it a great way to catch up on retirement savings if you've fallen behind.
Finally, the MetLife 457(b) Plan offers a death benefit, which means that your beneficiaries will receive your account balance if you pass away.
What Commissions and Management Fees Does a MetLife 457(b) Plan Come With?
The MetLife 457(b) Plan comes with a few different fees that you should be aware of.
First, there is a commission charged by the company in order to manage your account. This fee is usually a percentage of your assets, and it can range from 0.25% to 0.50%.
Second, there may also be an annual maintenance fee charged by MetLife. This fee is usually around $25, and it helps to cover the costs of keeping your account open and active.
Finally, there may also be some fees charged by the investment itself. These fees can vary depending on the type of investment, but they are typically around 0.50%.
What Are The Advantages of a MetLife 457(b) Plan?
Some of the advantages of a MetLife 457(b) Plan include:
- The ability to save for retirement on a tax-deferred basis
- The flexibility to make catch-up contributions if you're age 50 or older
- The option to take distributions from your account early if you meet certain conditions
- A wide range of investment options to choose from
What Are The Disadvantages of a MetLife 457(b) Plan?
The only real disadvantage of a MetLife 457(b) Plan is that you have to be employed by a government entity or non-profit organization to qualify. Other than that, it’s a great retirement savings plan with plenty of benefits.
If you’re not employed by a government entity or non-profit organization, then you’re not eligible to participate in a MetLife 457(b) Plan. That’s the only disadvantage.
What Are Some Alternatives to a MetLife 457(b) Plan?
There are a few alternatives to the MetLife 457(b) Plan.
One option is the Fidelity Retirement Plan. Another option is the TIAA Traditional Annuity. Lastly, there's the Vanguard 401(k) Plan. All of these options have their own set of pros and cons, so it's important to do your research and figure out which one is best for you.
How Do You Open a MetLife 457(b) Plan?
To open a MetLife 457(b) Plan, you'll need to contact a MetLife representative. You can do this by visiting their website or calling their customer service number. Once you're in touch with a representative, they'll help you open an account and choose the investment options that are right for you.
What is The Minimum Amount Required to Open a MetLife 457(b) Plan?
The minimum amount required to open a MetLife 457(b) Plan is $25. You can contribute as little as $50 per contribution period, but you'll need to make up any missed contributions when you're eligible.
What Are The MetLife 457(b) Plan Contribution Limits?
The MetLife 457(b) Plan contribution limits are pretty high. For 2020, the IRS allows you to contribute up to $19,500 per year. And if you're 50 years old or older, you can make catch-up contributions of up to $26,000 per year.
So, if you're looking to max out your retirement savings, the MetLife 457(b) Plan is a great option.
What Are The Eligibility Requirements for a MetLife 457(b) Plan?
In order to be eligible for a MetLife 457(b) Plan, you must be an employee of a state or local government entity, or a non-profit organization. You must also be participating in your employer's retirement plan.
Do You Pay Taxes On a MetLife 457(b) Plan?
The answer to this question is a bit complicated. The 457 plan is a retirement savings plan that is offered by many employers. The money in the account grows tax-deferred, which means you don't have to pay taxes on it until you withdraw it.
However, there are some exceptions. If you take a withdrawal before you're 59 ½, you may have to pay a penalty. And, if you withdraw money from your 457 plan to pay for qualified higher education expenses, you may not have to pay taxes on the withdrawal.
But, in general, you will not have to pay taxes on the money in your 457 plan until you retire and begin taking withdrawals. At that point, the money will be taxed as ordinary income.
When Can You Withdraw Money From a MetLife 457(b) Plan?
You can withdraw money from your MetLife 457(b) Plan whenever you want, but there may be penalties if you do so before you retire.
If you're still employed by the company that sponsors your plan, you may have to pay a withdrawal fee. And if you're under the age of 59½, you'll also have to pay a federal income tax on the money you withdraw.
How Does a MetLife 457(b) Plan Compare to a 401K?
If you're trying to decide whether a MetLife 457(b) Plan or a 401K is right for you, it's important to understand the key differences between the two retirement savings options.
A 457(b) Plan is an employer-sponsored retirement savings plan that allows employees to contribute pre-tax dollars from their paychecks into a tax-deferred account. 401Ks are also employer-sponsored retirement savings plans, but they differ from 457(b) Plans in a few key ways.
The biggest similarity between a 457(b) Plan and a 401K is the contribution limit. With a 457(b) Plan, you can contribute up to $18,000 per year (or $24,000 if you're over the age of 50). With a 401K, the contribution limit is $18,000 per year (or $24,000 if you're over the age of 50).
One key difference between a 457(b) Plan and a 401K is that 457(b) Plans are not subject to the early withdrawal penalty. With a 401K, you'll be hit with a penalty if you withdraw money from your account before you're 59. With a 457(b) Plan, you can withdraw money without penalty at any time.
Another key difference is that 457(b) Plans are only offered by public employers (like state and local governments), while 401Ks can be offered by both public and private employers.
What Assets Are Available With a MetLife 457(b) Plan?
A MetLife 457(b) Plan is an employer-sponsored retirement savings plan that allows you to save for retirement on a tax-deferred basis. You can choose from a variety of investment options, including stocks, bonds, and mutual funds. The plan also offers a death benefit and disability income protection.
Why Do People Use a MetLife 457(b) Plan?
The MetLife 457(b) Plan is a great way to save for retirement. It offers many benefits, including tax-deferred growth and the ability to take distributions without incurring any penalties. Additionally, the plan has low fees and expenses, which makes it an attractive option for many investors.
One of the main reasons people use a MetLife 457(b) Plan is because of the tax-deferred growth. This means that you can grow your money without having to pay any taxes on it until you retire.
Additionally, the MetLife 457(b) Plan offers the ability to take distributions without incurring any penalties. This is a great benefit for those who want to access their money before retirement.
Does a MetLife 457(b) Plan Accept Rollovers?
A 457 plan can accept rollovers from other eligible retirement plans, including 401(k)s, 403(b)s, governmental Thrift Savings Plans (TSPs), and traditional IRAs. The process is fairly simple and can be done by contacting MetLife directly.
The benefits of rolling over into a 457 plan are numerous. For one, you'll be able to consolidate your retirement accounts and have all of your assets in one place. This can make things much simpler when it comes time to retire. Additionally, a 457 plan offers more investment options than most other retirement plans, so you'll have greater flexibility in how you grow your nest egg.
Another advantage of a 457 plan is that it allows you to take out loans. This can be a helpful tool if you find yourself in a financial bind and need access to cash. However, it's important to note that taking out a loan from your 457 plan will reduce the overall balance of your account.
Finally, one of the biggest benefits of a 457 plan is that it offers tax-deferred growth. This means that your money can grow without being subject to taxation until you withdraw it in retirement.
How Long Does It Take to Transfer to a MetLife 457(b) Plan?
The 457(b) Plan is designed to be a long-term savings plan, so there are no restrictions on how long you can keep your money in the account. However, you may want to consider transferring your balance to another retirement account if you leave your job or retire.
MetLife offers a direct transfer option that allows you to move your funds directly to another eligible retirement plan, such as a 401(k) or IRA. This option is quick and easy, and it ensures that your money remains invested and grows tax-deferred.
How Do You Put Money Into a MetLife 457(b) Plan?
You can make contributions to your MetLife 457(b) Plan in one of two ways: through payroll deduction or by making a direct deposit.
If you choose to have your contributions deducted from your paycheck, the money will be taken out before taxes are calculated. This means that you'll get a smaller paycheck, but you won't have to pay taxes on the money that you contribute to your 457(b) Plan.
If you opt to make a direct deposit into your MetLife 457(b) Plan, you'll need to set up an account with MetLife. Once you have an account set up, you can make deposits whenever you want.
This is a good option for people who get paid irregularly or who want to contribute more to their 457(b) Plan than their paycheck will allow.
Can You Open a MetLife 457(b) Plan For a Child?
The answer to this question is a resounding yes! In fact, opening a MetLife 457 plan for a child can be one of the smartest financial decisions you make.