Your financial well-being is important. That’s why Cooper is pleased to be updating your retirement savings plan options.
Effective Monday, May 6, 2024, Cooper team members will be able to participate in Roth contributions through Fidelity. This is part of our Thrive 365 Financial well-being initiative.
What are Roth contributions?
Roth contributions provide a great opportunity to save for your retirement on an after-tax basis. With this type of account, your investments can grow tax-free, and you have the flexibility to make tax-free withdrawals of your contributions (though not earnings) whenever needed.
- 403(b) Contributions: All team members are eligible to make pre-tax contributions, Roth (after-tax) contributions, or both.
- Company Match: Team members who are at least 21 years of age, have completed one year of service, and have worked at least 1,000 hours are eligible for the match. Cooper will contribute to your Defined Contribution Retirement Plan account an amount equal to 50% of the first 5% of your base pay that you defer (subject to the IRS compensation limit) in the 403(b) plan.
If you retire or leave Cooper, earnings on your Roth contributions can be withdrawn tax-free, as long as:
- It has been five tax years since your first Roth contribution and,
- You are at least 59 ½ years old.
You must satisfy both requirements; otherwise, your earnings will be taxable if withdrawn.
Similarities between Roth contributions and traditional contributions:
- You choose the percentage of your salary to contribute.
- Both Roth and traditional pre-tax contributions must adhere to IRS limits.
- Your contribution amount is determined by your eligible compensation.
Differences between Roth contributions and traditional contributions:
- Unlike traditional pre-tax contributions, Roth contributions allow you to withdraw your money tax free when you retire.
- Unlike traditional pre-tax contributions, Roth contributions are deducted from your paycheck after-taxes are withheld, so your take-home pay may be less than it would be if you made an equal traditional pre-tax contribution.
| Pre-Tax Contributions | Roth Contributions | Employer Contributions | |
| Are contributions taxed when deducted from bi-weekly payroll? | No | Yes | No |
| Are contributions taxed when you retire? | Yes | No | Yes |
| Are earnings taxed with distributions? | Yes | No * | Yes |
| Important 2024 IRS Limits
$23,000 for 2024 for employee pre-tax and Roth contributions combined. An additional $7,500 catch-up contribution may be made on a pre-tax or Roth basis and is in addition to the combined pretax and Roth $23,000 annual limit for a person age 50 or older. * Only if it has been five years since your first Roth contribution and you are age 59 ½ or older. |
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To register or view the dates for upcoming workshops, click here. To view a video comparing Roth contributions to traditional pre-tax contributions, click here. To read more information, click here.
For questions, please email HR-Retirement@CooperHealth.edu or call 856.342.2403.