[UCRDBR] Retirement Savings Program – Roth After-Tax Contribution Options

[Departmental Benefits Representatives]

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July 28, 2023

To:
Department Benefits Representatives
From:
Central HR Benefits Office
Re:
Retirement Savings Program – Roth After-Tax Contribution Options
_____________________________________________________________________________________________________

DBRs, please share this important information via your department listserv.



On August 1, 2023, the UC Retirement Savings Program will start offering a Roth After-Tax contribution option in the UC 403(b) and UC 457(b) Plans.  This enhancement will give employees more flexibility to save and plan for their future through regular pretax contributions, new Roth After-Tax contributions, or both.



A Roth contribution is an after-tax contribution that can provide tax-free income in retirement. Roth After-Tax distributions (including earnings) can be withdrawn free of federal income tax after a five-year aging requirement has been satisfied and one of the following conditions is met: age 59½; disability; or death.



Pretax and Roth After-Tax contributions are subject to IRS limits: $22,500 in pretax and Roth After-Tax contributions combined ($30,000 if you’re 50 or older) to each of the UC 403(b) and 457(b) Plans in 2023, for a total of $60,000 to both plans.



Planned Employee Communications



8/1/2023 - All active employees who are eligible to participate in the UC Retirement Savings Program (RSP) will receive an announcement email with a link to the Detailed Brochure<https://hr.ucr.edu/sites/default/files/2023-07/uc_rothtransition_brochure_072523_final.pdf>, overview video and webinar registration.  Note that some of the links will not be live until 8/1/2023.



8/1/2023 – A Roth resource page will be available on the myUCretirement website<https://www.myucretirement.com/> and all other RSP content on the site will be updated to reflect the new offering.



8/1/2023 – Banner alerts on UCPath and NetBenefits sites, UCnet article and updated New Employee Benefits Orientation will promote the new enhancement.



9/13/2023 and 9/19/2023 – Live webinars led by a UC-dedicated Fidelity Investments workplace financial consultant will explain Roth After-Tax in detail and allow for questions. Webinar details will be shared when available.



Help and Questions


Please direct employees with questions about Roth After-Tax to Fidelity Investments at 1-866-682-7787.
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