Human Resource Services
Roth 403(b) Plan
Employees may designate all or part of their elective salary deferrals to a post-tax retirement option called a "Roth 403(b) plan."
This option does not increase the amount an employee can contribute to a retirement plan, but does provide some attractive options.
With a Roth 403(b) plan, you will pay taxes as contributions are made, and you will not lower your taxable income for the contribution year.
Contributions to this type of account are included in the aggregated Internal Revenue Code 402(g) limits for all elective contributions, which cannot exceed $15,500 in 2008 ($20,500 for participants who will attain the age of 50 before 12/31/08). Further, they are subject to IRC 415 annual limits, for aggregated employee elective deferrals and employer contributions, which cannot exceed $46,000 in 2008 ($50,000 for participants who will attain the age of 50 before 12/31/08).
Roth account balances are portable to Roth IRAs or other 403(b) Roth Accounts if the receiving plan accepts such rollovers. Tax-free treatment of distributions and earnings is only provided to qualified distributions. A qualified distribution is one that is made five years or more from the date of the first Roth contribution and the participant reaches age 59 1/2, becomes disabled, or upon participant's death.
Four investment providers offer a Roth 403(b) option: AIG Retirement, Fidelity, ING, and MetLife. Please refer to the 403(b) Tax-Deferred Annuity Companies listing for contact information.
To view a comparison of a pre-tax deferral to a post-tax Roth 403(b) contribution, visit this Roth 401(k)/403(b) calculator web site.
To authorize a Roth 403(b) deduction, you will need to establish a Roth 403(b) acocount and complete a 403(b) Salary Reduction Agreement for ORP Participants or 403(b) Salary Reduction Agreement for Non-ORP Participants, and submit your form to:
Retirement Services
PO Box 115005
Gainesville, FL 32611-5005
Fax 352-392-5166