Rice now offering Roth 403(b) investment option to employees

Rice employees can now elect to invest in a Roth 403(b) retirement savings plan, the Benefits Department has announced.

The Roth 403(b) plan provides an opportunity to save on a post-tax basis through payroll deduction, with non-taxable growth over time. The limit for combined Roth and pre-tax 403(b) contributions remains the same: $19,000 per year, or $25,000 for employees over 50 years old.

In addition, the Retirement Plan Change Form has been modified to allow additional flexibility in managing contributions. Employees can now pick when they want their election to take effect: as soon as practicable, the first of the next month or the first of a future month.

Rice employees invested in a traditional 403(b) plan may convert their current balances to the Roth 403(b) option. This allows employees to pay taxes now on money previously saved on a pre-tax basis, then have their balances deposited into a Roth 403(b). To make a conversion, contact TIAA or Fidelity directly.

For more information, contact the Benefits Department at benefits@rice.edu.

About Matt Wilson

Matt Wilson is a senior editor in Rice University's Office of Public Affairs.