conversation: User (schutzk21): "Hello everyone, this is my first post in this forum. I will try to make this as easy to understand as possible.\n\nI work for a retirement fund in Illinois. The fund has a separate program where we can save additional retirement income. This program consists of :\n\n-contributing up to 10% of our reportable earnings\n-after tax, not tax-deferred.\n-The rate of interest paid is currently 7.5%, and the rate may change in the future.\n-The interest is credited at the end of the year based on the opening balance amount at the beginning of the year. This means I would not earn any interest the first year I begin making contributions.\n\nI can take my final amount out when I retire at age 62. I am currently 26 years old. Some questions I have regarding this program:\n\n1)When it is time to take my money out when I retire, I have the option of rolling it all over into a Roth IRA. Does this mean I would take the full amount and not get taxed on it if it is going towards a ROTH? Would I simply then withdraw that amount from my ROTH IRA and not pay any additional taxes?\n\n2) Would this be a good idea to put money towards this as opposed to a ROTH IRA or a 457 plan? (my employer also has a 457 plan).\n\n3) What percentage would be a good amount and since I am not collecting interest on the first year, is that a big deal?\n\nThanks so much for your help on this matter. I am interested to see what you guys think."
  Self: "I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).\n\nYou may find these links helpful:\n\n- [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n\n*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*"
  