403(b) Plans: What is a “Roth” 403(b) account?

A Roth account is an account that accepts after tax deferrals. Contributions are made on an after tax basis however a later distribution from the account against the deferrals or the earnings on the account are not taxed.

Employer contributions are not allowed in a Roth account. In addition, all Roth contributions must be made either to a separate account from the traditional 403(b) or they must be tracked separately along with their earnings.

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