Roth IRA

Hunter1

One of the services I get on the net was running a poll to find out if employers have Roth IRA deductions for their employees. We have a Section 457 plan (similar to 401k, but for public sector), but I'm not aware of what steps would be required to set up a Roth deduction. Can someone educate me?

mirnbcan

Roth IRA's allow employees to contribute 'post-tax' dollars to an IRA. Limit for 2005 is $4,000. Since deductions are post-tax (unlike other IRA's) they don't require payroll deductions. I have a Roth IRA. My employer isn't involved in anyway. I just write my check and send it in.

I wouldn't think it would be too hard to set up a deduction for Roth IRA - but it also wouldn't seem to really be necessary.

Disclaimer: Retirement regs are not my forte.

Hunter1

Thanks for the answer. I raised the question because of the poll. Apparently some employers have set up Roth deductions. I would think an employee could have a deduction directly deposited with some financial institution where he/she would have the money go into a Roth without any intervention of the er. I wondered if the employer had something to do with it, whether the er would have some responsibility not to exceed the maximum, etc.