Human Resources » Benefits & Retirement » Deferred Compensation » 401(k) » Compare 401(k) Plans

Comparison of ROTH 401k, ROTH IRA, and Traditional 401k

Roth 401k plan Roth IRA Traditional 401k plan
Employee contributions are made with after-tax dollars. Employee contributions are made with after-tax dollars. Employee contributions are made with before-tax dollars.
Investment growth accumulates without any tax consequences. Investment growth accumulates without any tax consequences Investment growth is not subject to Federal and most State income taxes until funds are withdrawn.
No income limitation to participate. Income limits: married couples, $178,000, singles, $112,000 adjusted gross income. (2013) Same as Roth 401k plan. No income limitation to participate.
Contribution limited to $17,500 in 2013 ($23,000 for employees 50 or over). Contribution limited to $17,500 in 2013 ($23,000 for employees 50 or over). Contribution limited to $17,500 in 2013 ($23,000 for employees 50 or over).
Withdrawals of contributions and investment growth are not taxed provided recipient is at least age 59½ and the account is held for at least five years. Withdrawals of contributions and investment growth are not taxed provided recipient is at least age 59½ and the account is held for at least five years. Withdrawals of contributions and investment growth are subject to Federal and most State income taxes.
Distributions must begin no later than age 70½. (This may change.) No requirement to start taking distributions. Distributions must begin no later than age 70½.

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Campus/Institute Contacts:
Chattanooga   
Family Practice- Chatt. 
Health Science Center  
Knoxville Area    
Martin   
UTSI    
UT Memorial Hospital

SEND FORMS TO:
Deferred Compensation (401k, 457, 403b) Forms:
     Total Rewards/ Benefits & Retirement Office
     600 Henley St, #115
     Knoxville, TN  37996-4115

Insurance Forms:
     Insurance & Retirement
     P115 Andy Holt Tower
     1331 Circle Park
     Knoxville, TN  37996-0100

Retirement Forms:
     Total Rewards/ Benefits & Retirement Office
     600 Henley St, #115
     Knoxville, TN  37996-4115

Other Links:
Deferred Compensation (State site)
Deferred Compensation (Empower Retirement site)
Optional Retirement Program (ORP State site)
Tennessee Consolidated Retirement System (TCRS State site)
Office of Personnel Management- OPM (CSRS & FERS)