Why a Roth? A Roth contribution is after taxes. So the growth is tax deferred and withdrawals are free from income tax if held for 5 year and past 59 1/2.
If your 403 (b) plan does not currently offer a 403 (b) Roth option, inquire about adding it. If your plan offers a 403 (b) Roth option, you may be able to convert your existing 403 (b) balance to the Roth side. Or you may be able to add new money to the Roth side if you can not convert.
If your plan can not add a 403 (b) Roth option, you can do a conversion through a IRA.
A 403 (b) Roth conversion through a IRA is a bit more complicated. To roll over to Roth, first you must take the 403 (b) contributions and move to a IRA. On the transfer from the 403 (b) to the IRA, you will most likely have contract penalties on the transfer. Once the money is in the IRA you can move it to a Roth. On the transfer from the IRA to the Roth you will have taxes dues on 100% of the total amount.
Securities offered through Transamerica Financial Advisors, Inc. A Registered Broker/Dealer and Investment Advisor Member FINRA and SIPC
Kempf & Co 8195 166th Ave NE Suite 100
Redmond, WA 98052
(425)-881-8573
This information is intended for use by residents of OR, WA, CA, CO, NM, TX, IA, FL. Securities related services may not be provided to individuals residing in any state not listed above.