Is the Roth 403(b) contribution option the same as a Roth IRA contribution option?
No. There are some significant differences between a Roth 401(k)/403(b) and a Roth IRA. • You may contribute to a Roth IRA only if your modified adjusted gross income falls below a certain amount. To be eligible to make an annual contribution to a Roth IRA, your modified adjusted gross income (MAGI) for 2008 cannot exceed $116,000 if filing singly and $169,000 if married filing jointly. There are no income limits for those who want to contribute to a Roth 403(b) option within their plan. • A Roth IRA is an account that is separate from your retirement savings plan. Roth 401(k)/403(b) contributions are part of your 401(k)/403(b) retirement savings plan. • For 2008, the contribution limit for a Roth IRA is $5,000 per year. • The combined IRS contribution limit for both Roth 401(k)/403(b) and traditional 401(k)/403(b) pre-tax contributions if you are under age 50 is $15,500 for 2008. • If you are over age 50 and are eligible to make catch-up contributions, the combined IRS contribution li
