Roth 403(b)
What is a Roth 403(b)?
If your employer offers a Roth option within the 403(b) Plan, you have an additional savings opportunity to consider. You can make:
- Roth contributions on an after-tax basis, which can provide tax-free income in the future. Eligible Roth distributions are tax-free as long as you've satisfied the five-year holding period and are age 59½ or older, disabled or deceased.
- Traditional contributions on a pre-tax basis, which can reduce your taxable income and help provide tax savings now.
- A combination of Roth and traditional contributions, if appropriate for your personal circumstances and savings objectives.
Both contribution options help you to save and invest on a tax-deferred basis, allowing the potential for your account to grow to achieve your retirement goals. Please contact your district representative to learn more about your retirement savings options.
You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Variable annuities are long-term investments designed for retirement purposes. Early withdrawals prior to age 59½ will be subject to a 10% premature distribution penalty tax, unless an exception applies. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ‘88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant’s severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.
The OMNI Financial Group, Inc. (OMNI) is a third party administrator which has established a Preferred Provider Program (P3) and has recommended Voya Retirement Insurance and Annuity Company (VRIAC) for inclusion in the Program based upon VRIAC meeting or exceeding the established P3 qualifications and standards. For school districts that utilize OMNI services and have enrolled in the P3 program, VRIAC pays OMNI $36 per year for each actively contributing participant to cover a share of the school districts’ plan administration fees payable to OMNI.
Opportunity Plus is a tax-deferred variable annuity issued by Voya Retirement Insurance and Annuity Company (VRIAC). Securities are distributed by Voya Financial Partners LLC (member SIPC). All companies are members of the Voya® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Product and services may not be available in all states.