Now available—post-tax Roth contributions

The addition of this option gives you three ways to invest your savings

An egg with the word Roth on it sits atop rolled-up money


You now have options on how you contribute to your JHU retirement plan with TIAA. With the university's new Roth plan enhancement, participating faculty, staff, and bargaining unit employees can select to contribute through traditional pretax deductions, after-tax Roth contributions, or a combination of the two.

With the Roth option, your contribution is taken out of your paycheck after your income is taxed. This does not lower your current taxable income, but your after-tax contributions and the earnings on them are tax-free upon withdrawal in retirement, provided certain conditions are met.

The new Roth contribution will require a separate election from your pretax salary deferral. Your elections can be updated at any time through the TIAA retirement portal. Click here for a video to learn more.

Two things to remember:

  • Because Roth contributions are under the same IRS limits as pretax contributions to your plan, each dollar of a Roth contribution reduces the amount that can be contributed pretax (and vice versa). For 2023, your combined pretax and Roth contributions cannot exceed $22,500 if you are younger than age 50 or $30,000 if you are over age 50.
  • Your take-home pay will be less than it would be if you made an equivalent traditional pretax 403(b) contribution because income taxes must currently be withheld and paid on after-tax Roth 403(b) contributions.

Make an informed decision about what option might be best for you and take advantage of a personalized retirement checkup. Are you on track for your savings goals? Do you have a target retirement age? Log into MMA's Prosper Wise website to schedule a free one-on-one financial coaching session.

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