Beginning today (July 24), the University of Nebraska has added a Roth contribution option to the existing 457(b) Deferred Compensation Plan, as well as a Roth In-Plan Conversion option.
This new feature will offer an opportunity to convert non-Roth assets, such as eligible vested plan balances currently in an employee’s plan or assets rolled over from a former employer’s plan, into a designated Roth account.
Who might benefit from Roth contributions?
- Younger employees who have a longer retirement horizon and more time to accumulate tax-free earnings.
- Highly compensated individuals who are not eligible for Roth IRAs but who want a pool of tax-free money to draw from in retirement.
- Employees who wish to make catch-up contributions in 2024 and beyond.
For more information, review these frequently asked questions. Employees also can schedule a complimentary consultation with Fidelity or TIAA at these links:
Both companies will work with employees to evaluate all their options and help them create a retirement savings strategy that is right for their needs.
To add the Roth option to a 457(b), use these step-by-step directions to enroll in the 457(b) plan or change a current election.
With additional questions, contact the UNMC Benefits Office at 402-559-4340 or by email.