Tax Facts

4056 / What is a Roth 403(b) contribution program?

Updated: December 11, 2024 at 01:52 AM


Section 403(b) plans are allowed to offer a qualified Roth contribution program, which is basically a Roth account for elective deferrals.1 Essentially, participants of 403(b) plans establishing these programs are able to designate all or a portion of their elective deferrals as Roth contributions. Roth contributions will be included in the participant’s gross income in the year the contribution is made and then be held in a separate account with separate recordkeeping.2 For details on Roth contribution programs under cash or deferred arrangements, see Q 3780.3





1.  IRC §§ 402A(b), 402A(e).

2.  IRC § 402A(b).

3.  See also Treas. Reg. §§ 1.403(b)-3(c), 1.403(b)-7(e), 1.403(b)-10(d)(2).


Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.