Roth

In what has been described as the single greatest development in the retirement plan marketplace, 2006 introduced the Roth provision for 403(b) and 401(k) plans. The Roth provision works in tandem with the traditional pre-tax components of the plan but adds the flexibility of after-tax retirement contributions. With no cost to the plan sponsor to include the Roth provision, plan participants have new flexibility when it comes to planning for their “Future-Funded Ministry” (Retirement).

What is a Roth 403(b)?

• Contributions can be made after-tax like a Roth IRA
• Contributions and earnings can be distributed tax-free, subject to a five year minimum holding period and normal Roth age guidelines
• Contributions to Roth 403(b) are not subject to same income level limitations as regular Roth accounts
• Roth 403(b) has no earned income requirements as do Roth IRAs
• Download a Roth information sheet 103 KB
• Watch a video and PowerPoint presentation on Roth   

Who should consider utilizing a Roth 403(b)?

• All 501(c)(3) organizations, especially Missionary Organizations

Why is a Roth 403(b) such a great opportunity?

• All organizations have employees who will benefit from the future tax savings
• This is the best retirement planning option for most missionaries
• Combination of 403(b) and Roth 403(b) gives your employees the greatest flexibility in planning for their “Future-Funded Ministry” (Retirement)

How does our organization implement a Roth 403(b)?

• The organization has to agree to offer a Roth 403(b)
• Your retirement plan documents need updating to reflect Roth 403(b) option
• Your payroll system will need to be updated for Roth 403(b) contributions
• Employees need to be educated with how to incorporate the Roth 403(b) into their retirement planning

For more information on how Envoy Financial can serve your organization, contact us at (888) 879-1376, ext. 209 or by email .