Roth 403(b) Investment Option

You are likely familiar with the Roth feature, which allows employees to pay taxes on their contributions today while enjoying tax free distributions when they withdraw in the future (provided certain requirements are met). You pay tax on your contributions today to avoid paying any tax on your distribution in retirement. What this means is the earnings that accumulate on your Roth contributions are never taxed!

This tool to plan for retirement within the Servant Solutions Retirement Plan can provide advantageous tax results for many participants. Each person’s situation is different, so it is important that the participant carefully make a decision that works best for them. For example, for non-ministerial employees, Roth contributions often may be the best strategy for lowering overall taxation. However, a minister would likely want to continue to make contributions pre-tax because he/she can then make tax-free withdrawals in retirement utilizing the housing allowance. Be sure to consult your individual tax expert to see how this applies to your personal tax situation.

Want more information? Below are helpful resources we have compiled to help you learn more about our Roth investment option. If you still have questions, please contact us! We’re here to help.