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After-Tax Roth Plan

Eligibility

The below populations are eligible for this benefit:

Full-time faculty members
Full-time administrative staff
Part-time administrative staff who are scheduled to work 20 hours or more per week
Part-time faculty members

Overview

Starting January 1, 2025 the New School will offer an After-Tax Roth Plan in addition to the Tax Deferred Annuity (TDA) Plan, both administered through TIAA. Detailed plan information may be found in the Summary Plan Description (SPD).
Retirement - SPD.pdf.

Additional information may also be found in Pre-tax vs Post-tax Roth employee retirement contributions.

Enrollment

You can make your own personalized After-Tax Roth election anytime after January 1, 2025. Once you are enrolled and do not make an investment choice, contributions will be invested in a Qualified Default Investment Alternative (QDIA), described below. If you enroll or make a new election, the change will take effect on the first of the month following your change request.

Once enrolled in the After-Tax Roth plan, you can access your account online or call the TIAA Telephone Counseling Center at 800.842.2252 for account information. You can meet with a TIAA consultant for an individual counseling session on campus by calling 800.732.8353 to schedule an appointment. TIAA’s live webinars can also help you stay on track for meeting your financial goals; reserve your spot today at TIAA.org/webinars.

Contributions

You can choose to contribute a percentage of your base annual salary or a flat dollar amount per paycheck. The maximum annual contribution as set by the IRS in 2025 is $23,500.

Employees age 50 and older (and those who will attain age 50 by December 31) are eligible to contribute an additional $7,500 annually, as set by the IRS (referred to as the "Age 50+ Catch-Up"). If you have made or are making contributions to more than one employer's retirement plan, it is your responsibility to ensure that your total calendar year contributions do not exceed the maximum annual basic contribution amount and the Age 50+ Catch-Up contribution amount (if applicable).

Your election is a Salary Reduction Agreement and shall be legally binding and irrevocable with respect to amounts paid while the agreement is in effect. Generally, employees must pay Social Security and Medicare tax on 403(b) contributions that they make into their After-Tax Roth Account. It is recommended that you consult a tax advisor before making your elections.

Managing Contributions

You are eligible to make voluntary contributions to the After-Tax Roth plan beginning the first of the month following your hire date. You can make new After-Tax Roth enrollments and changes to existing elections at any time through MyDay. Your enrollment or change will take effect in the pay period following the date you submit the benefit event through MyDay.

Investment Options

A variety of investment choices are offered by TIAA. You can select investment options and name beneficiaries for this plan online directly with TIAA (click "Ready to Enroll"; then select "Tax-Deferred Annuity Plan"). If you do not make an investment choice, your contributions will be automatically invested in a Qualified Default Investment Alternative (QDIA) (attached below). This TIAA Lifecycle Fund, also known as a Target-Date Fund, assumes your expected year of retirement is age 65. Review the below Lifecycle Funds fact sheet and the investment performance and fee information. You can change your investment choices online with TIAA at any time by logging in to your account.

You have the option of opening a TIAA Self-Directed Brokerage Services Account within your retirement plan, giving you an opportunity to divide your retirement plan contributions among a variety of investment choices beyond the investments offered through The New School's plans. Review the below/attached for additional information.
Retirement - Self-Directed Brokerage Account.pdf

Roth Contribution FAQs

How is a Roth 403(b) contribution different from a Regular 403(b) TDA contribution?

Roth contributions are made into your account on an after-tax basis. This means that you will pay income taxes on the contributions at the time they are deducted from your paycheck. The earnings on your Roth 403(b) contributions are tax free as long as you leave them in your account for at least 5 years and withdraw them after you are age 59 1/2. What this means for you is that during retirement your distributions from your Roth 403(b) account will be paid to you tax free if you qualify as described above.

Regular 403(b) contributions are taken out of your paycheck on a tax deferred basis. This impacts you in several ways:

You will not pay Federal income tax on the money you put into your Regular 403(b) account when it is deducted from your pay. In most, but not all states, you will also not be assessed State income tax on your 403(b) deductions.
Your contributions continue to grow tax deferred (no income tax is assessed while the money is in your 403(b) account.
When you retire and start to take out money, you will then pay income taxes based on your tax bracket at the time.

How do I know if I should use the Regular 403(b) TDA or Roth 403(b)?

How you choose to save for retirement is very much an individual decision. Deciding whether to save using a Regular 403(b) TDA or Roth 403(b) will be dependent upon your age and your tax bracket. Your plan record keeper (TIAA) may have a calculator that you can use to see if saving using Regular 403(b) TDA or Roth 403(b) makes more sense.

How much can I put into my Roth 403(b) Account?

The Regular 403(b) TDA and Roth 403(b) limits for 2025 allow you to make contributions in total of $23,500 for individuals under age 50, and a $7,500 catch-up for individuals age 50 and older. Beginning in 2026, for those who make more than $145,000 annually (as of 2023, dollar amount is indexed), catch-up contributions must be made as Roth.

May I use a Roth 403(b) even if I would not be eligible for a Roth IRA?

Even though you may not qualify to make Roth IRA contributions, you would be eligible to use the Roth 403(b) feature offered in your plan.

Can I make contributions using both the Regular 403(b) TDA method and the Roth 403(b) method at the same time?

Yes. You can use both features at the same time in most retirement plans offering Roth 403(b). Having a Roth 403(b) feature in your employer’s retirement plan gives you flexibility and potential tax planning strategies for your retirement years. All tax planning should be done with the help of your personal tax advisor who will have the facts surrounding your individual situation.

When will employee Roth contributions be available at The New School?

Employee Roth contributions will be available at The New School starting January 1, 2025.

How do I make the Roth election in MyDay?

To enroll, use these instructions to initiate a Retirement Savings Change through MyDay.

When will the Roth elections reflect on my pay if I make my election January 1, 2025?

The Roth election will reflect on your payslip mid January to early February if made in the first 10 days of January. Please see below for specific dates.

Salaried employees: If you make your retirement election between 1/1/2025 and 1/10/2025, the new contributions will be reflected on the second pay period of January (1/13/2025-1/26/2025), pay date 1/24/25.
Hourly employees: If you make your retirement election between 1/1/2025 and 1/10/2025, the new contributions will be reflected on the first pay period of February (1/13/2025-1/26/2025), pay date 2/7/25.

Where will I see my Roth contribution on my payslip?

To view your Roth contributions on your paycheck, look under the “Gross to Net” tab on your payslip in MyDay. In the “Benefits” section you will see a line for “Roth Employee Contribution”. That is your contribution towards Roth.

Where can I view my Roth contributions on the TIAA website?

You can view your Roth contributions by logging into your TIAA using the link here.

Beneficiaries

See * Retirement Plans Overview for info on designating a beneficiary.

Additional Retirement Resources

Return to * Retirement Plans Overview.