Contributing to Your Account

Contributing to The Episcopal Church Retirement Savings Plan (RSVP) is easy—just update the contribution amount in your Fidelity NetBenefits account and indicate the way you want to contribute (pre-tax, Roth, or after-tax). Contributing as much as you can to the RSVP may be one of the smartest ways to improve your ability to retire comfortably. It's hard to imagine, but contributing just a few dollars more each week could mean a lot, come retirement—especially when you are investing on a tax-advantaged basis.

Your Contribution

Here are the ways that you can contribute:

Pre-tax

• Contributions are deducted from your pay on a pre-tax basis, lowering your current taxable income.
• Potential earnings on your invested savings grow on a tax-deferred basis.
• You pay federal income tax (and, if applicable, state income tax) on your contributions and any earnings when you take distributions from your plan at retirement.
• The taxable portion of your account is subject to 20% mandatory federal income tax withholding unless it is directly rolled over to an IRA or another retirement plan.

Roth

• Contributions are deducted from your pay on an after-tax basis.
• Potential earnings on your invested savings grow on a non-taxable basis (as explained below).
• If certain conditions are met when a withdrawal is taken—that is, if you take a qualified distribution—the earnings on your invested savings are not subject to federal income tax.
  • A qualified distribution is one that is taken (1) at least five tax years after your first Roth contribution to the plan and (2) after you have attained age 59 1/2, or if you become disabled or die.
• Since your contribution was made on an after-tax basis, the contribution itself is also not subject to federal income tax upon withdrawal.

After-tax

• Contributions are deducted from your pay on an after-tax basis.
• Potential earnings on your invested savings grow on a tax-deferred basis.
• You pay federal income tax (and, if applicable, state income tax) on any earnings when you take a distribution from the plan.
• Since your contribution was made on an after-tax basis, the contribution itself is not subject to federal income tax upon withdrawal.

For more information about the RSVP, please see the RSVP & Lay DC Plan Employee Guide.

Retirement Savings Plan Disclaimer