to participate in the roth 457 option of the ny state deferred compensation plan
gillen stand silent too
Roth 457 Accounts: A Potential Tax-Free Retirement Income
You've probably heard of a Roth IRA – an investment vehicle that lets you make contributions that are not tax deductible but take tax-free distributions in retirement, once certain conditions are met. Did you know there's also a Roth option in the Plan?
When you choose to make Roth 457 contributions to the Plan (PDF), you'll pay taxes upfront — when your money goes into the Plan. Then you'll enjoy tax-free withdrawals — as long as you're at least 59½, and do not take withdrawals from your Roth account for at least five years after your first Roth contribution is made to the plan.
You can choose to allocate part of all of your salary deferral to the Roth, or all or part of your salary deferral to your traditional 457(b) pre-tax account.
Is a Roth 457 account right for you?
Only you can answer that question. Take advantage of the Roth Analyzer Tool to discover more about which option may be right for you. You may want to consider making Roth 457 contributions if you:
- Think that tax rates rise before you retire and want to take advantage of potential tax-free withdrawals
- Expect to be in a higher tax bracket when you retire
- Are younger, with many years until your retirement
Learn more about how the Roth 457 plan option (PDF) works. Also, learn about how to convert your traditional 457(b) account into a Roth 457 (PDF).
Get the help you need
Talk with one of our Account Executives about whether Roth 457 may be right for your retirement portfolio.
Neither the Plan nor its representatives may offer tax or legal advice. You should consult your own counsel before making any decisions.
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