[UCRDBR] New Roth IRA In-Plan Conversion Option for Retirement Savings Plans 403(b) and 457(b)

[Departmental Benefits Representatives]

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December 2, 2025

To:
Department Benefits Representatives (DBRs)

From:
Central HR Benefits Office on behalf of UC Office of the President
Re:
New Roth IRA In-Plan Conversion Option for Retirement Savings Plans 403(b) and 457(b)
____________________________________________________________________________________________________
DBRs, please share this information via your internal listserv.  Do not reply to this email.  Please send a separate email with questions to benefits at ucr.edu<mailto:benefits at ucr.edu>.

UC Office of the President announced that as of December 1, 2025, the University of California will offer a new Roth In-Plan Conversion option for its 403(b) and 457(b) plans under the UC Voluntary Retirement Savings Program (UC RSP).

This change gives participants the ability to convert existing pretax savings in their UC 403(b) or 457(b) accounts into Roth (after-tax) assets - potentially helping them diversify their tax exposure and plan for retirement more flexibly.

A key benefit of Roth savings is the potential for federally tax-free earnings and withdrawals.*  Converting pretax assets to Roth can be beneficial if an employee expects individual tax rates to increase in the future, when taxes are paid now on the converted funds.

Roth In-Plan Conversions are irreversible and involve significant tax implications.  Employees should review this option carefully and consult with tax advisors before deciding.

As a next step, employees can:

  *   Visit myUCretirement.com<https://myucretirement.com/resources/articles/0013> to learn more about Roth contributions and Roth In-Plan Conversions.
  *   Call 1-800-558-9182 to speak with a UC-dedicated Fidelity Retirement Planner about their options and retirement planning needs.

Communications & Resources
An email announcement regarding the new Roth In-Plan Conversion option will be issued to active, eligible, and terminated employees.

*A distribution from a Roth 401(k), 403(b) or governmental 457(b) plan is tax-free and penalty-free, provided the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability or death.
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