Roth Account

A Roth account may also be included in the illustration, and increasing contributions to the Roth account can optionally be included to resolve the potential shortfall. The following options are used to configure how the Roth contributions are used for calculating any shortfall.

Notes:The Participant Gap calculations does not consider taxation when calculating income needed during retirement.

To include a Roth account for retirement income, the following conditions must be met:

1.The employer file must be configured with a visible Roth account.

2.If the employer file is configured with a custom retirement plan, the plan must be configured with a Roth account.

Include increased deferrals to Roth account for solving shortfall

Checking this box will also illustrate funding the shortfall with increase deferrals to the Roth account.

Use Same Display Option for Roth Account as Configured for the Pre-Tax Account

Checking this option will use the same display method in the Paycheck for the Roth account (as configured in the XXXXXXXX tab of this dialog).

Funding Shortfall Option

When increased funding is required and the Roth account is selected as part of the solution, one of three methods can be selected for determining the allocation of increased contributions between the two accounts:

1.Increased Contributions Only to the Pre-Tax Account. Additional funding

2.Contributions to each account are increased proportionally. For example, if the client is contributing 4% to the pretax account and 2% to the Roth account and the contribution need to double (e.g. a total increase in  the contribution by 6% ), the pretax account would increase to 8% and the Roth account would increase to 4%.

Note:When are no current contributions, select the desired setting for proposed increases.


3.Contributions are increased equally to each account. In the above example, the contributions would increase to 7% for the pretax account and 5% for the Roth account.

4.Increased contributions only to the Roth account.

Note:Distributions from the pretax and Roth accounts will be proportionally based on their balances.