Roth 403(b) Program
Virginia Tech employees are eligible to participate in the university's Deferred Savings Program for retirement through after-tax contributions, known as Roth contributions. The Roth 403(b) program is an opportunity for employees to invest in after-tax savings and can be an integral part of longer term financial and/or retirement planning. Contributions made through the Roth 403(b) plan are made with after-tax income.
The Internal Revenue Service (IRS) limits the annual contributions employees can make to a 403(b) plan. The 2017 limits are:
- Under age 50: $18,000
- Age 50 or older: $24,000
Individuals with 15 years or more of service may also be eligible for an additional $3,000 catch up per year not to exceed $15,000 in a lifetime. Employees should talk with their plan vendor to determine if they are eligible for the catch up program.
The annual limit for 403(b) contributions is a combined limit. This limit applies whether 403(b) contributions are made pre-tax (under the 403(b) Tax Deferred Savings Plan), after-tax (as Roth contributions) or a combination of both.
The following companies are approved vendors: