Roth contribution option in Voluntary Contribution Retirement Plan
Georgetown University is introducing the option to make Roth (after-tax) contributions to the Voluntary Contribution Retirement Plan (VCRP) starting June 1, 2023. Please note that the existing pre-tax contribution option will remain available, allowing you to choose the retirement savings tax strategy that aligns best with your personal financial goals.
What does this mean for you?
A Roth contribution allows you to invest in your retirement on an after-tax basis. While your funds are taxed at the time of contribution, the qualified withdrawals, including earnings, are tax-free during your retirement. Unlike Roth Individual Retirement Accounts (IRA), which have income restrictions on contributions, the Voluntary Contribution Retirement Plan allows individuals to make Roth contributions without any income limitations.
To take advantage of the Roth contribution option, login to GMS to access your retirement savings elections and choose the percentage or fixed dollar amount you would like to allocate to the VCRP on a Roth basis. You can specify your desired contribution allocation among the retirement vendors within the Employee Contribution Allocation field. You can find step-by-step instructions on the GMS training webpage.
We understand that making decisions about retirement savings can be complex, especially when considering the tax implications. To assist you in understanding the benefits and considerations of Roth contributions, we have prepared a comprehensive guide that explains the Roth option and provides additional information about the Georgetown University Retirement Savings program.
We also encourage you to reach out to your retirement investment company and to attend an upcoming information session:
- Is Roth right for you? | Webinar with Vanguard
Wednesday, June 7 | 12-1 p.m. ET
- Understanding Roth in Your Work Savings Plan | Webinar with Fidelity
Thursday, June 8 | 10-10:30 a.m. ET
Thursday, June 15 | 12-12:30 p.m. ET
- Making Roth Contributions to the Voluntary Contribution Retirement Plan in GMS
Zoom Meeting with GU Retirement Benefit Analyst, Vivek Kumar
Wednesday, June 21 | 1-1:30 p.m.
Wednesday, June 28 | 3:30-4 p.m.
- Exploring Roth Contributions: An overview of the after-tax contributions | Webinar with TIAA
Thursday, June 22 | 3 p.m. ET