Illinois State University employees will be able to choose a Roth 403(b) as an option for supplemental retirement savings, effective July 2013.
The Roth 403(b) was designed to combine the benefits of saving in your tax-deferred workplace retirement plan with the advantage of avoiding taxes on your money when taking a qualified withdrawal at retirement.
As part of our Human Resources Benefit Services educational plan, employees will be able to listen to a brief 9-minute tutorial virtually available 24 hours a day to learn more about this new contribution option available through Fidelity and TIAA-CREF. In just 9 minutes, employees will learn:
- How a Roth 403(b) works
- Differences between a Roth 403(b) option and a traditional pretax 403(b) option
- Differences between a Roth 403(b) and a Roth IRA (individual retirement account)
- Who may benefit from a Roth 403(b)
- Considerations in determining if a Roth 403(b) is an appropriate choice for you
In addition our educational plan will include campus visits from Fidelity and TIAA-CREF, e-mail announcements, and Roth Fact Sheets. And as always, our retirement counselors, Cathy Hempstead and Todd Long, will be available by phone or appointments.