MBA 403(b)
Roth 403(b)
- Available to MBA retirement participants
- Tax-free distributions at retirement
- Earnings grow tax-free
- 2009 allows up to $16,500 in contributions or $22,000 if you're age 50 or over
Disclaimers:
- Many Roth 403(b) rules differ from Roth IRA rules.
- Roth 403(b) contributions are taxed before going into the plan.
- Roth 403(b) contributions are made through salary deferral.
- Distributions are not allowed except after five years from the date of the first contribution and can only be made after age 59 1/2, at disability, or at death. Distributions for severance from employment are allowed but may be subject to taxes and IRS imposed penalties.
- Maximum Roth 403(b) contributions are limited by amounts specified by law.
