The Addition of Roth Funds to the Fidelity 403(b) Plan Coming Soon!

As an organization we are committed to continuously improving our Archdiocesan benefits package.
Based on our employees’ feedback, it is with great pleasure we announce that beginning January 1,
2022 the Archdiocese will begin offering a Roth Contribution option to our existing 403(b) Plan.
Roth 403(b) option offers tax-free retirement income, unlike traditional pretax 403(b), the Roth 403(b)
allows you to contribute after-tax dollars and then withdraw tax-free dollars from your account when
you retire.

What is the difference between traditional 403(b) and Roth 403(b)?
Roth contributions are after-tax, which means you pay taxes now on your contributions, but all qualified
withdrawals*, including earnings, are free. This is different from traditional 403(b) contributions
that are made on before-tax basis.

• Because Roth contributions are under the same IRS limits as pretax contributions to your plan,
each dollar of a Roth contribution reduces the amount that can be contributed pretax (and vice
versa).

• Your take home pay will be less than it would if you made an equivalent traditional pretax
403(b) contribution, because income taxes must be currently withheld and paid on after-tax
Roth 403(b) contributions.

Please see the attached information from Fidelity regarding the Roth 403(b) and whether or not you
would benefit from the Roth 403(b). You can also call Fidelity at 800-343-0860. Fidelity will work with
you to evaluate all your savings options and help you create a retirement savings strategy that’s right for
you and your needs.

We will also be rolling out educational zoom meetings in January, so please be on the lookout for the
invitations. We are excited in rolling out this new way for you to save up for your retirement!
*Qualified withdrawal is one that is taken at least 5 tax years after the year of your first Roth
contribution and after you have attained age 59 1/2, become disabled or deceased.