Thank you for the inquiry. I already have a Roth 403b through my employer and they match up to a certain percentage. The match is in a separate account from my contributions and I will have to pay taxes on this money when I begin to withdraw in retirement. I guess my thinking is I would rather pay the taxes now and have the benefit of tax free growth. I am a big Dave Ramsey fan and listen to the show daily. His radio program is where I first heard about this new law in early 2016. I asked my accountant about it and she was not aware of any such law. I called our HR department and they said they were not aware of it either. I am not sure where to begin looking on the IRS website either. I spent about an hour on there last night...
I guess I'm a bit frustrated with my HR department (and myself) as they offer no education on your retirement and it is like pulling teeth to get straight answers from them. For example, Valic is the only vendor the school has ever acknowledged for our retirement plan, the only vendor we get emails about, the only vendor that shows up at the schools, etc. It never occurred to me to even ask if there were any other vendors available. I have worked with a SmartVestor for several years now and he kept suggesting that I "just ask" because I am paying high fees with Valic and that is impacting the growth. I never did because Valic was the only one the admin ever talked about. Well this time I decided to ask and it turns out we actually have 6 choices. (This is why I'm frustrated with myself.) Why hasn't the school ever put this information out there for their employees? Turns out we have to have a group plan number for the vendor I have chosen to move my account to and there is only 1 person at the CO who has this number and they just happen to be on vacation this week.
I'm learning the hard way that I have to advocate for myself. It is the principle of the matter...if I can show this law to HR and my coworkers and how this would impact their retirement maybe we can get this option offered in our plan. I'm a bit down the road in my career, but imagine the impact this would have on younger teachers who are earlier in their careers. I wish I had had someone to come along side of me and help me in my retirement planning, but I didn't. I'm doing it now on my own, slowly but continually educating myself.
Sorry for the long reply... Mary