The Hartford 'Demystifies' Roth 401k
SIMSBURY, CT, November 11, 2005 -- The Hartford Financial Services Group, Inc. (NYSE: HIG) today introduced a new educational program, designed specifically for financial professionals, plan sponsors and retirement plan participants, to help them prepare for the availability of Roth 401k. The Roth 401k is a new retirement plan feature which allows investors to designate certain 401k contributions as "after-tax," enabling them to withdraw these same dollars tax-free at retirement. This new feature can be very significant for the retirement market as Baby Boomers retire in record numbers and seek greater flexibility and control in how they draw assets at retirement.
There is a great deal of interest and anticipation for the Roth 401k, as well as the potential for confusion and misinformation. Financial professionals are anxious for knowledge as illustrated by The Hartford 401k team's recent quarterly conference call, which was attended by close to 1,000 financial professionals and broker-dealer firms. In this call, hosted by national spokesperson for corporate retirement plans Tom Foster, The Hartford began the process of "demystifying" this new retirement plan feature for clients and introduced a series of practical tools to turn information into action and opportunity.
Education with the Tools to Spur Action
The Hartford's new educational program is designed to educate financial professional clients on the new Roth 401k and help them identify for whom the Roth 401k might be a suitable option. Unique features of The Hartford's program include:
- Roth 401k Study Guide for Financial Professionals -- includes a five step action plan to determine if the Roth 401k might be suitable for clients or prospects and customizable prospecting tools to support advisor marketing and education campaigns.
- Roth 401k Employer Q&A Educational Resource Guide -- a resource tool written in layman's terms, complete with Roth Readiness checklist and sample employee letter to support the communication process.
- Roth 401k Employer Fact Finder -- a questionnaire for financial professional use with plan sponsors to determine whether the Roth 401k feature may be a fit for their plan.
- Participant Guide to Understanding the Roth 401k Contribution Option -- fold-out reference gives employees background and comparison information to determine if Roth 401k contributions are right for them.
According to Jim Davey, vice president and managing director of The Hartford's corporate retirement plans business, "Our program will arm our clients with the tools to successfully understand and communicate what Roth 401k is and how it works. This is where the financial professional can really differentiate himself or herself." Davey also stressed the importance of working with local Pension Administrators to support both the sales and consultative process. "This is where their value and expertise can really come into play."
Retirement Readiness Begins in the Workplace
With the decreasing role of corporate defined benefit plans and the future of Social Security in doubt, the workplace continues to be the crucial source of self-directed retirement savings vehicles for Americans. The Hartford believes that high quality, effective educational programs for both employers and retirement plan participants is a critical way to drive greater retirement readiness for Americans. And this is particularly critical for new and emerging retirement features such as the Roth 401k, where there may be more questions than answers on the part of consumers. According to Davey, "The Roth 401k can be yet another potentially terrific retirement savings and income planning tool for many investors, but it's not for everyone. Whether you are an employer considering implementing this new feature or an individual considering integrating a Roth 401k into your retirement plan, education and information is paramount at this stage."
For a complete list of all Roth 401k retirement plan sponsor materials, including the firm's Plan for Life(R) presentation, and other prospecting tools, or for more information, contact The Hartford 401k Sales Desk at (800) 874-2502, option 4.
About The Hartford
The Hartford is one of the nation's largest financial services and insurance companies, with worldwide revenues of $22.7 billion in 2004. The company is a leading provider of investment products, life insurance and group benefits, automobile and homeowner's products; and business property-casualty insurance. International offices are located in Canada, Japan, Brazil and the United Kingdom. The Hartford's Internet address is http://www.thehartford.com/.
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