UMMS has announced a new option for you and your retirement savings: an in-plan Roth conversion option is now available through the University of Maryland Medical System retirement plans.
Remember, at the beginning of this year, UMMS added a Roth post-tax contribution option to your retirement plan. The addition of the Roth post-tax contribution option allows you to contribute to your retirement plan account on an after-tax basis.
Now, you will be able to convert funds from your traditional non-Roth account to a Roth account, all within your same plan. However, it’s important to note that converting funds to Roth dollars is considered a taxable event – meaning you will pay taxes on the amount you convert after the end of the tax year in which you made the conversion.
Be sure to meet with a tax advisor/financial planner to understand what an in-plan Roth conversion could mean for you as you prepare for retirement, as there could be significant tax implications.
For more details, please check your email or call an Empower Participant Services Representative at 877-778-2100, weekdays from 8 a.m. to 9 p.m. ET. If you want assistance with your retirement planning, you can speak with a retirement counselor. Visit umms.retirepru.com to schedule an appointment.