Roth accounts consist of after-tax contributions. Roth contributions and associated earnings are withdrawn tax-free, provided they meet applicable distribution guidelines.

View the Roth brochure (pdf) or the Roth Q&A to learn more.

Roth 457 plan history

The Small Business Jobs Act (the "Act") of 2010, signed into law by President Obama in September 2010, contains two provisions affecting Roth accounts within retirement plans.

  1. Prior to passage of the Act, Roth elective contributions were only available in 401(k) and 403(b) plans. The Act adds governmental Section 457(b) deferred compensation plans to the definition of applicable retirement plans that can offer a qualified Roth contribution program beginning in 2011.

  2. Prior to passage of the Act, the conversion of pre-tax retirement plan account assets to an after-tax Roth account was only possible by moving money eligible for a plan distribution to a Roth IRA (subject to applicable income limits). The Act now allows pre-tax amounts eligible for distribution from a 401(k), 403(b), and now 457(b) plans to be converted to  an after-tax Roth account within the plan regardless of income limits.

Adopt the MNDCP Roth 457

Offering the MNDCP Roth option will be mandatory beginning January 1, 2026. MSRS does not charge any additional fees to either the employer who adopts the MNDCP Roth or the employee who elects to contribute Roth after-tax dollars through payroll deduction.

Until the employer adopts the MNDCP Roth, employees are not able to:

  • contribute after-tax Roth dollars through payroll deduction, or

  • roll over any after-tax Roth dollars from other employer sponsored retirement plans into their MNDCP account

Steps to adopt the MNDCP Roth option:

  1. Determine the effective date of offering the MNDCP Roth option.

  2. Email MSRS (payroll.support@msrs.us) with your decision. We will work with you on the implementation.

  3. Educate payroll personnel regarding proper tracking and tax reporting of the MNDCP Roth deductions.

  4. Establish separate fields in your payroll system to track both Traditional pre-tax salary deferrals and Roth after-tax salary deferrals for tax reporting (IRS Form W-2) purposes.

  5. Ensure contributions remitted to the MNDCP reflect the proper amount and type (pre-tax or Roth after-tax).

  6. Announce the Roth feature to your employees and talk with your MSRS representative (pdf) who can help educate employees on the features of this new option.