Roth 401(k) Plan
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 are the same as the traditional 401(k). View a comparison of 401(k), Roth 401(k), 403(b), 457 Plans.
|Combined Contribution Limit for 2014
Under age 50
|Over age 50|
|401(k), Roth 401(k), 403(b)||$17,500||$23,000|
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.
Contributions are made through regular payroll deductions. Employees may sign a new salary reduction agreement as often as once per month. Forms must be submitted to the Office of Human Resources by the end of the month preceding the month in which they are to become effective. Do not submit forms to Great West Life. Completed forms may be faxed to Human Resources at (423) 425-4574.