ROTH


ROTH

Is the Roth 457(b) the right direction for you?

The Roth 457 option was added to NDC on January 1, 2012. For some employees, it might make sense to pay taxes on NDC account contributions now, rather than when money is withdrawn at retirement. If you expect your income, the marginal tax rate or both, will rise substantially over time, you may be taxed at a lower rate today than in the future – including in your retirement years. So the Roth option may be a good one – even if you are younger or currently in a relatively low tax bracket.

At the other end of the spectrum, the Roth option may appeal to current high-income earners who expect to continue to pay a high tax rate into retirement. This group may more easily afford to contribute the maximum annual contribution and pay the taxes today, in exchange for tax-free income in retirement – think of it as tax diversification.

Workers who expect to have relatively higher Plan account investment earnings or to otherwise end up with a higher amount of money set aside for retirement, may benefit from paying taxes up front or just having a pool of tax-free money to draw on. Such tax considerations can be complex; it’s always a good idea to consult with an independent tax advisor before making a decision on how Roth 457(b) savings may benefit your long-term savings.

Select the following link for more frequently asked questions (FAQs) that can help you decide if a Roth 457(b) is right for you.

Contact


Mailing and Street Address

Nevada Public Employees' Deferred Compensation Program
Nevada State Library & Archives Building
100 N. Stewart St., Suite 100 
Carson City, NV 89701

    Phone and Facsimile

    Phone: Rob Boehmer, Program Coordinator 775.684.3397

    Micah Salerno, Administrative Assistant 775.684.3398

     

    Fax: 775.684.3399

      Email Address

      Deferred Compensation: deferredcomp@defcomp.nv.gov

      Voya Financial: NDC@voya.com

        Map and Directions