Aug 9, 2016 | Atlanta, GA
Georgia Tech Human Resources announces an enhancement to its supplemental retirement investment options. Employees now have access to a Roth 457(b). While there has been a Roth 403(b) option available for some time, this new offering gives employees the opportunity to defer compensation after taxes.
- Participants may now choose to designate some or all of their future elective deferrals to their governmental 457(b) plan as Roth contributions. Participants may elect Roth deferrals based on the contribution parameters established by the IRS. Participation can be ongoing with no requirement to re-elect every year.
- Roth contributions are made on an after-tax basis and earnings accrue on a tax-free basis. Qualified distributions from a Roth deferral account will be completely tax-free.
- A participant may stop or change their Roth deferral election at any time during the monthly window for changes on the Retirement Manager site. However, once Roth contributions are deducted from the participant’s compensation, the participant may not re-characterize those contributions.
- Separate accounting and tax cost basis tracking and reporting will be established for the Roth 457(b) contributions.
Visit www.ohr.gatech.edu/retirement to learn more about the Roth 457(b) option. Please contact any of our supplemental savings plan vendors for more specific information regarding contribution limits, taxation questions or any aspect of Roth contributions.