Roth (After-Tax) Contributions
When you sign up to make Roth contributions , you pay taxes now so you can relax and enjoy tax-free withdrawals in retirement, as long as certain requirements are met.
Why make Roth contributions?
- You pay taxes now and, in most cases, withdraw the contributions and earnings tax free in retirement.
- Withdrawing tax free might mean you pay less in taxes in retirement, especially if you're in a higher income bracket in retirement.
Roth contributions are...
- a new option offered within your Commonwealth of Virginia 457 Plan, not a separate retirement plan.
- available to everyone! Unlike Roth IRAs, which have eligibility restrictions and lower annual contribution limits.
Here's a Roth Comparison Chart , that demonstrates some key differences between making pre-tax and Roth contributions.
To start making Roth contributions:
- Log into your account.
- Select Contributions.
- Click Change My Contribution Amount.
- Under Type, in the Roth field, enter the amount you would like to contribute on an after-tax basis per paycheck.
- Click Next, then Submit.
- You'll receive a confirmation number, as well as confirmation via e-Delivery or mail.
Use this online tool to help you decide if Roth contributions are right for you.
Here are some frequently asked questions regarding Roth contributions.