With Roth 403(b) and Roth 457(b) plans, participants can contribute after-tax dollars to save for retirement, without the AGI limitations imposed on Roth IRA accounts. Contributions and earnings for Roth 403(b) and Roth 457(b) accounts are tax-free upon withdrawal as long as the participant has a qualified withdrawal reason and the account has been in existence for 5 years.
These types of plans may benefit employees who would like to access tax-free money in retirement. If you need money prior to the five year holding period, remember contributions made to a Roth can be withdrawn without penalty before retirement, however, the earnings are taxable and subject to penalty.
Please contact our Employer Plans Division at (800) 433-1828, ext. 3 or email us at firstname.lastname@example.org for more information.