ROTH 401(k) PLAN
The university is including in its employee benefits package the ability to participate in a Roth 401(k) supplemental retirement plan effective September 1, 2006. The Roth 401(k) is a hybrid plan that combines features of the Roth IRA and the traditional 401(k) plans. Employee contributions are made with after-tax dollars. You cannot switch money between the plans. Withdrawals of contributions and investment growth are not taxed provided the recipient is at least age 59 and 1/2 and the account is held for at least five years. Investment choices will be the same as the traditional 401(k).
If you participate in a Roth 401(k) and are not participating in the traditional 401(k), the Roth 401(k) will be matched up to $50/month by the State of Tennessee; however the matching will be contributed to a traditional 401(k) using the same percentage of allocations chosen in the Roth 401(k). View information about Tax Deferred Income Plans (401k, 403b, 457)
Combined Contribution Limit for 2007:
Under Age 50 Over Age 50
401(k), Roth 401(k), 403(b) $15,500 $20,500
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