This year participants in the United Methodist Personal Investment Plan (UMPIP) have a new opportunity for retirement savings. In addition to your current savings opportunities, you are able to make Roth contributions to the UMPIP. Roth contributions are made on an after-tax basis, so participants will not be taxed on them again upon withdrawal. Earnings on Roth contributions may be distributed tax-free as long as certain conditions are met. Roth contributions may create tax advantages for some participants, while some may experience unintended tax consequences. Your overall retirement savings strategy should be informed by your personal financial circumstances, which are unique from person to person. Determining whether Roth contributions are right for you is as easy as calling EY Financial Planning Services for a personalized Roth contributions modeling consultation. Participants have free, unlimited, confidential access to EY Financial Planning Services. Clergy who decide to make a Roth contribution election can do so by completing the Contribution Election Form (clergy). Lay employees of the Conference or churches that sponsor the UMPIP can also make a Roth contribution election by submitting this Contribution Election Form (lay). to your salary-paying unit. All participants may refer to the Roth Contribution Guide for more information. Roth contributions, like before and after tax contributions, can start at any time during the year.
W-2 Guidance For Local Churches from Wespath
Wespath (formerly, the General Board of Pension and Health Benefits) has shared guidance on how to treat Roth contributions on the W-2 forms for clergy and local church lay employees through the webinar below (23:16-31:30). This excerpt from the webinar is offered as an additional resource.