Before-Tax Versus After-Tax Roth Contributions

The Supplemental Retirement & Savings Plan gives you a choice between making your contributions on a tax-deferred or after-tax basis or a combination of tax-deferred and Roth after-tax.

Before-Tax Contributions
You pay no federal or state income tax on the before-tax money you put into the Supplemental Retirement and Savings Plan or the accumulated investment earnings until you receive it. These are referred to as “tax-deferred contributions.”

After-Tax Roth Contributions
You pay federal and state income tax on the money you put into the Supplemental Retirement and Savings Plan on an after-tax basis. The investment earnings  accumulate tax-free and are paid to you tax-free at the time you receive it as long as the withdrawal is qualified. After-tax Roth contributions may only be made  through Fidelity.