Roth 403(b)
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A Roth 403(b) may be an investment in flexibility.
Want to boost your savings or reduce your taxable income in the future?
A Roth account offered through your employer’s 403(b) could be the solution you are looking for. Like a Roth IRA, a Roth (b) offers a way to set aside after-tax money, and after 5 years, makes tax-free withdrawals of principal, interest and earnings if certain conditions are met. And you can:
Contribute much more than to a Roth IRA (up to $20,500 or 100% of includible compensation, whichever is less for 2022, plus $6,500 more if you are age 50 or older).
Participate without earning limits.
Tax-free distributions after the end of the five-year period beginning with the first year for which a Roth contribution was made to the plan, and in the event of any of the following:
— reaching age 59 1/2
— death
— disability
Roll your Roth 403(b) account over to other Roth accounts or Roth IRAs. [There must be a distribution event, since Roth 403(b) accounts are subject to the same rules that apply to pretax 403(b) plan contributions.]