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ROTH
403(b) PLAN IN 2008
On January 1, 2008, the AHRP will add a Roth 403(b)
plan to the current traditional pre-tax savings option offered through
the AHRP-TSA Plan (a traditional 403(b) plan).
Unlike traditional pretax 403(b contributions which are taxable upon
distribution, Roth contributions are taxable when made, but qualified
distributions are tax-free. Depending on an individual’s present
income tax rate compared to his/her income tax rate upon distribution,
a Roth 403(b) option could be helpful in relieving the overall tax
burden to the participant. For some individuals, this tax savings
could be very significant. In addition, many financial planners are
now stressing tax diversification as an important component of a well
balanced portfolio.
Unlike Roth IRAs, there are no income limits for eligibility to
participate in a Roth 403(b) plan allowing individuals to participate
in a Roth type account regardless of income.
Roth 403(b) contributions qualify for the same employer matching
benefits as the pre-tax 403(b) alternative and loans may be taken
against the balance as with the 403(b) counterpart.
You may wish to research the features of a Roth 403(b) plan between
now and 2008 to determine if this option would be beneficial for you.
The AHRP Web site: www.AHRP.com will
provide additional information and decision support to help you
determine which AHRP Plan would be more beneficial.
LOG-IN
ID Change
Beginning October 1, 2007, you will be required to
establish a new user ID when accessing your AHRP account through the
AHRP Web site.
At present, your Social Security number is used as your user ID in
conjunction with a secure password to allow access into Your Benefits
Resources (the AHRP recordkeeping system). The new model has been
developed to alleviate data privacy and identity theft concerns with
the use of Social Security numbers as user IDs.
You may continue to use your current password, but an added feature
will allow you to provide an e-mail address through which you can
receive password reset notices from the AHRP should you forget your
password. This e-mail feature will greatly expedite the password reset
process which now relies on notices sent through the mail to the
participant’s mailing address.
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