The Division of Human Resources is pleased to announce that beginning in January, University employees will be able to take advantage of a new retirement option – the Roth 403(b). Initially, the program will be available through two carriers: AIG VALIC and The Hartford. In addition, the University is advised that the S.C. Deferred Compensation Program will begin offering a Roth 401(k) in 2008.

Representatives from AIG VALIC and The Hartford will offer seminars on the Roth 403(b) on December 11 and 13 and January 10, 15 and 23. They will provide an overview of the differences between the Roth and Traditional 403(b), as well as discuss how the Roth and Traditional 403(b) complement each other. Ample time will be provided for questions and answers. Online registration is available at Roth 403(b) Seminar Registration.

The Roth 403(b) differs from the Traditional 403(b) in that participants contribute after-tax dollars to obtain tax-free earnings and withdrawals if the Roth account is in place for at least five tax years before a withdrawal is made on or after the participant reaches age 59½, or due to disability or death of the participant. Participants in Traditional 403(b) plans contribute pre-tax dollars that are taxed when withdrawn.

University employees may realize significant new savings opportunities with the Roth 403(b), which offers tax flexibility to individuals who

• are unable to contribute to a Roth IRA due to Adjusted Gross Income (AGI) limits
• hope to avoid increasing taxes on Social Security
• want to avoid forced distributions at age 70½ by rolling over to a Roth IRA
• want to maximize assets for heirs.

Once you establish a Roth 403(b) account with one of the authorized providers listed below, you will need to complete a Section 403(b) Salary Reduction Agreement authorizing Payroll to make the appropriate deductions.