Roth option offers Retirement Savings Plan participants another way to save

February 01, 2019

​In addition to contributing to the Retirement Savings Plan on a pretax basis, you can also contribute on a Roth after-tax basis. Here are some potential benefits of the Roth feature.

personal financial planning

​The Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP) is a flexible and convenient way to build savings and help achieve long-term retirement goals. In addition to contributing to the RSP on a pretax basis, you can also contribute on a Roth after-tax basis, or both (subject to limitations).

Here are some potential benefits of the Roth feature to consider:

  • You make Roth contributions from your pay after taxes have been deducted. This might be a good choice if you think your tax bracket is lower now than it will be when you withdraw your savings later.
  • Roth contributions to the RSP grow tax free.
  • You (or your heirs) can withdraw all Roth contributions, and qualified Roth earnings, tax- and penalty-free at any time, for any purpose, subject to the Internal Revenue Service five-year holding rule.

Not yet participating in the RSP? Talk with your employer about enrolling today. If your employer doesn’t offer the RSP, ask them to call the Board of Pensions at 800-773-7752 (800-PRESPLAN) for more information.