What Is a T-Flex Annuity?

by Gregory Gambone ; Updated July 27, 2017

The T-Flex annuity is a popular component to many qualified retirement plans at both public and private organizations. MetLife provides and manages the T-Flex, and all money contributed to the annuity is held within MetLife’s general account. As a retirement savings vehicle , the T-Flex offers several attractive features that make it a sound choice for furthering your goals.

Qualified Plans

The T-Flex is found within qualified retirement plans like 401k plans, 403b plans and 457 plans. These plans offer employees an opportunity to save a portion of their earnings toward a future retirement goal on a tax-deferred basis. Money deposited into the T-Flex reduces the taxable amount of the employee’s paycheck, as well as lowers the taxable income for the year. It is not until the money is actually withdrawn during retirement that income taxes are due.

Annuities

Annuities can provide investors with several advantages over ordinary stock market investments. Because these products are held with and managed by insurance companies, different rules apply to how the money is managed. Insurance carriers offer multiple options and riders designed to enhance the total return of the account, as well as protect funds from negative economic times. Additionally, annuity contracts can be converted into a permanent stream of income, providing the account owner with guaranteed paychecks for life.

T-Flex Fixed Annuity

The T-Flex annuity is a fixed retirement product managed by MetLife. Employees contributing to the T-Flex receive guaranteed interest earnings for one year on each new deposit, and subsequent interest rates are fixed in one-year increments beginning on January 2. Interest rates are guaranteed never to be lower than 3.5 percent per year. The T-Flex fixed annuity is a conservative retirement investment vehicle that provide safety of principle for employees wishing to protect their money against stock market declines and maintain purchasing power against inflation.

Popularity

MetLife maintains a top-tier position out of all annuity providers in the United States and reported the largest amount of new investor money in both 2008 and 2009. The T-Flex annuity was the second most popular fixed retirement vehicle sold by independent broker-dealers in the fourth quarter of 2009. Clearly, both the average consumer and industry professionals recognize the advantages of the T-Flex product and the benefit of MetLife as a provider.

About the Author

Gregory Gambone is senior vice president of a small New Jersey insurance brokerage. His expertise is insurance and employee benefits. He has been writing since 1997. Gambone released his first book, "Financial Planning Basics," in 2007 and continues to work on his next industry publication. He earned a Bachelor of Science in psychology from Fairleigh Dickinson University.