The company has enhanced its system to allow Roth 401(k) and Roth 403(b) contributions as of January 1, 2006, according to a news release. FASCore has also updated its deferral processing functionality, including its Web sites, voice response system and deferral file layout, as well as its enrollment and salary deferral forms.
To help plan sponsors in deciding whether to amend their plan documents to allow Roth contributions, as well as to help participants determine whether after-tax Roth contributions or before-tax contributions make the most sense for them, the company has created several educational pieces explaining the options.
In addition, a Roth decision calculator will be available on FASCore’s Web site starting January 1, 2006.
According to the announcement, Great-West Retirement Services will recordkeep Roth contributions separately and track the first Roth contribution date, which is necessary to determine the five-year period after which Roth contributions become tax-free upon withdrawal, assuming the participant is age 59½, or for reason of death or disability.
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