MassMutual to Offer Roth 401k Accounts Supported by Comprehensive Education Tools
SPRINGFIELD, MA, November 14, 2005 -- MassMutual Retirement Services will offer the Roth account option for its 401k and 403(b) plans in mid-2006, and has already begun developing comprehensive educational tools for sponsors, advisors and participants. The new Roth feature will allow plan sponsors to offer another tax-advantaged retirement savings option.
In support of its new Roth offerings, MassMutual is developing an extensive education campaign to guide plan sponsors through the decision-making process. A Roth Q&A and a white paper are already available on MassMutual's plan sponsor Web site. Additional materials will be available later this year and early in 2006 including a comprehensive booklet outlining roles and responsibilities for MassMutual, the plan sponsor, and the payroll provider. The booklet will include suggested timelines for building the Roth feature into an existing 401k or 403(b) plan.
Details of MassMutual's Roth educational campaign were discussed last week at MassMutual's Client Advisory Committee (CAC) meeting. The CAC, comprised of 11 plan sponsor clients as well as key MassMutual leadership, was created by MassMutual to better serve its plan sponsor clients and to provide a regular forum for their questions, concerns and suggestions.
"As we develop educational materials in support of our Roth 401k and 403(b) option, we will look to our plan sponsors for input on how we can best meet their needs and the needs of their participants," said Fred Castellani, executive vice president of MassMutual Retirement Services. "The Roth option was a key topic of discussion at last week's Client Advisory Committee meeting and we will incorporate the feedback we received from our plan sponsor members going forward," he added.
MassMutual is developing a comprehensive participant education campaign that will include pros and cons and sample scenarios for participants to consider when evaluating the Roth option. The company also plans to offer an online Roth analysis tool for its participant Web site that will allow participants to generate side-by-side contribution scenarios for Roth vs. pre-tax contribution accounts. MassMutual communication specialists will conduct on-site Roth educational sessions for participants as appropriate, and will provide updated materials as necessary in response to Internal Revenue Service guidance expected by the end of 2005.
For more information about MassMutual Retirement Services' Roth 401k and 403(b) option, please call (888) 626-4911 or visit http://www.massmutual.com/retire.
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