403(b) Roth Contributions
Grow your 403(b) retirement plan with after-tax Roth contributions.
Frequently Asked Questions
An employee Roth salary deferral is a contribution to your 403(b) retirement account that has already been taxed. The contribution and earnings grow tax-free, and distributions (subject to certain rules) are taken tax-free in retirement.
Any 403(b) participant can make a Roth salary deferral to their retirement account as long as they elected to do so on their enrollment form. However, the employer’s payroll system must be able to support processing Roth salary deferral contributions. Employers cannot make Roth contributions to an employee’s account.
Yes. Both pre-tax and Roth salary deferrals are added together to calculate the total amount contributed. Combined they must not exceed the lesser of eligible taxable compensation or the statutory annual maximum contribution limit.
Yes. Employee salary deferrals, including catch-up contributions, can be split between pre-tax and Roth.
If an employer has implemented Roth contributions within its plan, a transfer or rollover of an existing 401(k) Roth account is possible. A Roth IRA is not eligible to rollover to a Roth 403(b) account.
No. Housing Allowance can only be claimed against distributions from the pre-tax portion of the participant’s account.
If a participant is making catch-up contributions in 2026 AND their taxable income was over $150,000 in 2025, the catch-up contributions have to be designated as Roth contributions in 2026. This requirement was implemented by the IRS for contributions starting in 2026.
A participant who is making catch-up contributions in 2026 and had taxable income of $150,000 or less in 2025 does NOT have this same requirement. They can choose between pre-tax and Roth.
A Roth conversion is moving funds from a pre-tax 403(b) to a Roth 403(b). This movement of funds is a taxable event in the year of the conversion. However, the funds in the Roth 403(b) grow tax free and allow for tax-free withdrawals in retirement.
In order to convert pre-tax 403(b) funds to a Roth 403(b), an in-plan conversion form will need to be completed.
The 5-year rule requires that a Roth 403(b) account must be in place for 5 years from the participant’s first contribution before earnings can be withdrawn tax and penalty free. Only qualified distributions from a Roth 403(b) are tax and penalty free. For distributions to be qualified, the participant must be age 59 ½ or older AND the Roth 403(b) 5-year rule is met.
If the participant is age 59 ½ or older and the Roth portion has NOT been in place for 5 years or more, it is NOT considered a qualified distribution, so earnings are taxed as ordinary income. There is no 10% early withdrawal penalty because the participant is age 59 ½ or older. If the participant is under age 59 ½, any earnings withdrawn is subject to both the 10% early withdrawal penalty and taxed as ordinary income. Withdrawal of contributions is penalty and tax free.
Take Advantage of Tax-Deferred Growth
When you reach the time to start taking distributions from your retirement account, qualified distributions from Roth funds are income tax free. To take advantage of making Roth 403(b) contributions to your retirement account, check with your employer to make sure their payroll system supports Roth contributions. If they do, you just need to contact our team to update your enrollment form.
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Retirement Resources
Minister Retirement Book
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Retirement Cost of Waiting Calculator
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Housing Allowance
Read our guide on Housing Allowance and how it might benefit you.