Columbia Benefits is pleased to announce that a new savings option will
be added to the Voluntary Retirement Savings Plan (VRSP): Roth contributions. On and after July 1, 2014, you will be able to make Roth
contributions, pre-tax contributions or a combination of Roth and
If you contribute to the VRSP today, you know that your current
contributions are made on a pre-tax basis. This means the money you
contribute is not taxed as part of your pay, but it will be taxable when
paid out to you in the future.
The new Roth contribution feature gives you another savings option. Roth contributions will allow you to contribute after-tax dollars from
your pay to the VRSP and, so long as you meet certain criteria, these
contributions and their investment earnings will be tax-free when paid
to you from the plan.
On April 23, 2014, all eligible faculty and staff will receive at your
Columbia email address an overview of how Roth contributions work, and
features to consider when deciding whether to save on a Roth basis, a
pre-tax basis or both.
Additional information will be provided at upcoming meetings, where Vanguard and TIAA-CREF representatives will be available to answer your questions.