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Roth 403(b) Contributions
ALERT!!
Effective 08/08/2008, no changes will be made to CCC’s legacy
website, now with Internet address www.ncompliancelegacy.com. Henceforth, www.ncompliance.com
goes directly to CCC's new, dynamic, database supported website.
For many months now, CCC has been developing and testing a new, dynamic, database-supported website,
which now resides at www.ncompliance.com, while at the same time maintaining this website, which is
now our legacy website (www.ncompliancelegacy.com). Development of the new website was essential to
allow CCC to provide dedicated sections of its website to more than 50 new clients accumulated since
publication of the Final 403(b) Regulations on July 23, 2007. We chose completion of the Plan Document
System on the new website as the appropriate time to migrate from the legacy website, even though
considerable work remains to be done. Specifically, we will be working with Vendors through the end
of calendar year 2008 to incorporate updated Vendor information into the new website. Moreover, 457(b)
Deferred Compensation Plan (DCP) information remains only on this legacy website, but those CCC clients
for which we are managing their 457(b) Plans may continue to refer to this legacy website until the full
migration has been accomplished.
We are very proud of our new website, especially the Plan Document System and the Content Management
System (CMS), which allows Client Employers and Vendors to manage the content of their own sections of
the website. We hope you share our enthusiasm and will create links form your own websites to your
dedicated sections of the CCC website. Doing so will provide everything your employees need to know
about their 403(b) Program.
Available for the First Time in 2006
Effective January 1, 2006, a new type of contribution became available
to 403(b) TSA accounts. These are called Roth 403(b) contributions and,
unlike Traditional 403(b) elective deferral contributions, Roth contributions
are subject to Federal and State income tax withholdings. On the other
hand, qualified distributions from Roth 403(b) accounts are tax-free,
both original contributions and the earnings thereon. There is a five-year
waiting period from the initial contribution to a Roth account and other
distribution eligibility requirements before distributions become eligible
for tax-free treatment (age 59 1/2, severance from employment, death,
disability, or hardship).
Your Employer May Not Offer the Roth 403(b) Contribution
Option
Employers that currently sponsor Traditional 403(b) Programs are not required
to allow participants to make Roth contributions. Among CCC client School
Districts and ESDs, some already allow or plan to allow the Roth option
and others do not. Check your employer's section of this website to determine
if you will be able to make Roth 403(b) contributions. If your Employer
does allow Roth 403(b) contributions, then the Salary Reduction Agreement
has been enhanced to incorporate Roth contribution elections.
Some Vendors Will Not Offer the Roth 403(b) Contribution
Option
Early indications are that roughly half of the authorized vendors for
various CCC School District and ESD clients will offer the Roth contribution
option. If you are interested in making Roth contributions, first check
to make sure that your Employer allows Roth contributions and then check
the Master List of Authorized Vendors sorted by vendor
or sorted by district
to see which vendors will accept Roth contributions.
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