S5E3 – MSU Retirement Plans Explained

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Roth Contributions, Tax Planning, and What to Do Now

Michigan State University recently added Roth options to its retirement plans, and that change creates new opportunities and new decisions for MSU employees. In this episode of Kitchen Table Finance, David Shotwell and Nick Nauta break down what Roth contributions really are, how they differ from traditional pre tax contributions, and why the right answer is rarely all or nothing.

The conversation walks through how Roth contributions work inside the MSU 403b and 457 plans, when paying taxes now can make sense, and when it may not. David and Nick explain how tax diversification can add flexibility in retirement, why employer contributions are still pre tax, and how required minimum distributions factor into long term planning.

They also cover recent rule changes affecting catch up contributions for those age 50 and older, and why these updates prompted MSU to add Roth options in the first place. Most importantly, they remind listeners not to let complexity or decision fatigue get in the way of saving for retirement.

If you are an MSU employee trying to decide between Roth and pre tax contributions, or wondering how these new options fit into your bigger retirement picture, this episode will help you build a practical framework for making confident decisions.

Contact SRB today at 517-321-4832 or email us at info@srbadvisors.com.

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