Ask the Experts October 13, 2020

Do Income Limits Apply When Making Roth Contributions to a 403(b)?

Experts from Groom Law Group and Cammack Retirement Group answer questions concerning retirement plan administration and regulations.

Reported by

“Are there income limits applicable to Roth 403(b) contributions?”

Charles Filips, Kimberly Boberg, David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer:

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

No, and this is one of the primary advantages of a Roth 403(b) contribution when compared to a Roth IRA contribution.

If you contribute to a Roth IRA, the amount of your modified adjusted gross income (MAGI) affects the amount you can contribute. Your MAGI for Roth IRA purposes is your adjusted gross income as shown on your return with some adjustments, such as the inclusion of tax-exempt interest income and certain deductions. If your MAGI is above a certain amount, your contribution limit may be reduced. For example, in 2020, if you are single and your MAGI exceeds $124,000 (or $196,000 if married filing jointly), your ability to contribute to a Roth IRA phases out until you cannot contribute at all at $139,000 ($206,000 if married filing jointly). Thus, many individuals who are unable to make a Roth contribution on their own will be able to do so if their 403(b), or 401(k), plan permits Roth contributions.

 

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Rebecca.Moore@issgovernance.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future Ask the Experts column.
Break from the Grind October 13, 2020

TUESDAY TRIVIA: Why the Donkey for Democrats and the Elephant for Republicans?

The donkey has long been the animal symbol for Democrats and the elephant has been the one for Republicans?

Reported by

How did the donkey get associated with the Democratic party and the elephant with the Republican party?

Several sources say the origins of the Democratic donkey can be traced to the 1828 presidential campaign of Andrew Jackson. One says Republicans responded to Jackson’s campaign slogan, “Let the people rule,” by saying it sounded like herding a bunch of “jackasses” to Washington and letting them vote.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Instead of being insulted, Jackson embraced the animal image and started using it on campaign materials. The donkey was further cemented as the Democratic party’s mascot in the 1870s, when influential political cartoonist Thomas Nast used it as a symbol for the party.

According to History.com, an image of an elephant was featured as a Republican symbol in at least one political cartoon and a newspaper illustration during the Civil War (when “seeing the elephant” was an expression used by soldiers to mean experiencing combat), but the elephant didn’t start to take hold as a Republican party symbol until Thomas Nast used it in an 1874 “Harper’s Weekly” cartoon.

Reported by
Reprints
To place your order, please e-mail Reprints.

«