What Does Roth Mean To Me?

Some retirement plans allow for Roth contributions, which are made on an after-tax basis.

• Employees at any income level may make Roth contributions
• Contributions are made on an after-tax basis.
• Qualified distributions are tax-free if they satisfy two requirements:
  • The Roth account has been in place for at least five tax years
  • The distribution is made on or after the attainment of age 59½, or due to disability or death
• Terminated employees can roll over a Roth account to another plan with a Roth 401(k) or 403(b) feature or to a Roth IRA.
• Roth treatment is available for future contributions only; existing pre-tax  contributions cannot be converted into Roth after-tax contributions.

Are Roth contributions right for you?

There are many factors to consider, and only you can decide what fits into your long-term retirement savings goals. While no one can predict the future or know for certain what their income or tax rate will be in retirement, our Roth Calculators may help.

Benefits of Roth contributions

If you believe your taxes will be higher in retirement,  it may be better to pay taxes on your contributions now through a Roth retirement plan at a lower tax rate. If you believe your tax rate in retirement will be the same, you may want to avoid additional tax liability at that time by utilizing tax-free distributions provided through a Roth plan.

• If you have a long time until you retire and have the potential for significant earnings over time, it might make sense to take advantage of tax-free earnings at retirement due to their potential for accumulation over time.
• If you previously were excluded from contributing to a Roth IRA due to income limitations (generally, a modified adjusted gross income of $116,000 for singles and $169,000 for married individuals), you may now take advantage of a Roth option and tax-free distributions at retirement.
• If you think you may want to preserve assets for your heirs, a Roth retirement account can be rolled into a Roth IRA, which is not subject to minimum required distribution rules (this means you wouldn't have to start taking account distributions at a certain age if you didn't need the money at that time).

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the mutual funds or The Hartford's group variable annuity products and funding agreements, and their underlying funds. For fund and product prospectuses and/or a disclosure document containing this and other information, contact your financial professional or visit our website. Read them carefully.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

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