New ways to help you achieve financial wellness

JHU is committed to helping its faculty and staff achieve financial well-being. Its retirement program was recently updated to help employees meet retirement savings goals, and effective in early 2023, it's introducing another enhancement to the retirement program: a Roth contribution option, which allows you to contribute to the JHU retirement plan on an after-tax basis.

Through the Roth option, you can make contributions that are taxed based on your current tax rates, so you can make tax-free withdrawals later in retirement after meeting certain criteria. This option may benefit you if you expect your tax rate to be the same or higher in retirement. Your combined pretax and Roth after-tax contributions are subject to the same annual IRS-established maximum limit.

What is a Roth contribution option?

In your retirement plan, your pretax contributions accumulate tax deferred, and withdrawals are taxable. With the "designated Roth" option, your after-tax Roth contributions also accumulate tax deferred but may be taken tax free in a qualified distribution. A qualified distribution is one that occurs at least five years after the year of your first Roth contribution and is made either on or after attainment of age 59½, on account of disability, or on or after death. These potentially significant tax benefits are similar to those of a Roth IRA, but Roth contributions have higher contribution limits than a Roth IRA.

If you have questions about the Roth contribution option, call TIAA at 888-200-4074, 8 a.m. to 10 p.m. on weekdays.

MMA Prosper Wise—your trusted adviser

Planning for your financial future doesn't have to be complicated.

JHU has contracted with the Marsh McLennan Agency to offer free retirement plan advice and education to its employees. MMA Prosper Wise is a digital platform amplified by financial coaches to assist you with your retirement plan investment questions. You will use the MMA Prosper Wise scheduler to speak with a live, virtual financial coach.

Marsh McLennan coaches are MMA employees and licensed professionals with areas of expertise in retirement plans, investing, and financial education. They are unbiased and do not sell products or receive commissions.