457b Roth
Are you not enrolled in the Plan? Enroll Now and start saving for retirement via 457b Pre-Tax or 457b Roth contributions or both.
Current Participants wishing to make 457b Roth payroll contributions to their current Investment Provider(s) can use the Increase Contributions Form to start contributing to 457b Roth.
457b Roth Workshop Recording
Who would benefit from watching the workshop recording?
- New Hires/Established Employees
- Full-Time/Part-Time/OPS Employees
- Current Plan Participants
- Employees Not Currently Participating in the Plan
- Employees Getting Ready to Retire
- Employees Entering/Exiting DROP
This workshop recording covers the following:
- What is the Florida Deferred Compensation Plan?
- What Does it Mean to Bridge the Savings Gap?
- Key Benefits
- Payroll Contributions including a Comparison of Pre-Tax vs. Roth
- Florida Deferred Compensation Plan Investment Options
- Overview of Pre-Tax/Roth Investing
- Available Plan Resources
- Distributions
457b Roth FAQ
PLAN ELIGIBILITY AND GENERAL INFORMATION
457b Pre-Tax:
- Payroll contributions that lower taxable income
- Distributions taxed as income
- Penalty-free withdrawals after 31 days of separation from employment
457b Roth:
- Post-tax payroll contributions
- Qualified distributions are not included in gross income
- 457b Roth qualified distribution rules apply
457b Roth payroll contributions are subject to Federal Income Tax withholding at the time they are contributed to the Plan. Investment earnings grow tax-free. Qualified distributions are not taxed but are reportable.
ENROLLMENT
Eligible employees may enroll in the Plan at any time of the year* and not just during the Open Enrollment Period.
- Use the Enroll Now button on MyFloridaDeferredComp.com to fill out and submit the online EZ Enrollment Form. This option allows you to set up 457b Pre-Tax and/or 457b Roth payroll contributions in one step.
- Print and complete the 457b Pre-Tax and/or 457b Roth EZ Enrollment Form(s), located at MyFloridaDeferredComp.com, under Publications, Administrative Documents, and Forms. Either fax (850-488-7186) or mail (200 East Gaines Street, Tallahassee, FL 32399) the completed form(s) to the Bureau of Deferred Compensation. Complete both the 457b Pre-Tax and 457b Roth EZ Enrollment Forms to elect both 457b Pre-Tax and 457b Roth payroll contributions at enrollment.
- Contact an Investment Provider to set up enrollment.
- Set up enrollment using an Investment Provider’s online enrollment procedure, via the Provider’s website.
No. Participants can use the online Increase Contributions Form or contact their Investment Provider(s) to start 457b Roth payroll contributions.
Beneficiary designations apply to both 457b Pre-Tax and 457b Roth payroll contributions held by a Participant’s Investment Provider(s). Participants with multiple Investment Providers should designate beneficiaries with each of their Investment Providers.
CONTRIBUTIONS
The minimum payroll contribution is $20 per monthly pay period or $10 per bi-weekly pay period. Contributions as a percentage cannot exceed 80% of a Participant’s paycheck. The maximum contribution limits for 457b retirement plans are determined by the Internal Revenue Service (IRS) and are updated yearly. Both 457b Pre-Tax and 457b Roth payroll contributions are combined and subject to Internal Revenue Code (IRC) Section 457b limits.
For the most up-to-date maximum limits, see Internal Revenue Code (IRC) Section 457b at IRS.gov, or view the current contribution limits and suggested bi-weekly and monthly deferral amounts at MyFloridaDeferredComp.com under Publications, Administrative Documents, and Forms.
View the Current Contribution Limits and Suggested Bi-Weekly and Monthly Deferral AmountsA 457b Pre-Tax payroll contribution is a type of elective deferral made to your 457b Deferred Compensation Plan from your paycheck.
The amount of the 457b Pre-Tax contribution is not included in the employee’s gross income at the time of the payroll contribution. Distributions from the account are included in gross income and subject to all applicable wage-withholding requirements.A 457b Roth payroll contribution is a type of elective deferral made to your 457b Deferred Compensation Plan from your paycheck.
With a 457b Roth payroll contribution, the employee irrevocably designates the deferral as an after-tax contribution. The amount of the 457b Roth contribution is included in the employee’s gross income at the time of the payroll contribution and is subject to all applicable wage-withholding requirements. Qualified distributions are not subject to income tax.IMPLEMENTATION OF SECURE 2.0, SECTION 603 "ROTH HIGH EARNERS"
“Roth High Earners” is shorthand for the requirements of Secure 2.0, Section 603, which requires Participants who meet the definition of a “High Earner” to make Age-Based Catch-Up Contributions on a 457b Roth (after-tax) basis. This requirement applies each year, based on the prior year’s FICA wages.
For example:
Participant A earned FICA wages that qualified them as a High Earner in 2025. In 2026, Participant A’s age-based contributions to the Plan in excess of the Regular Limit MUST be contributed as 457b Roth contributions.
Participant B DID NOT earn FICA wages that qualify them as a High Earner in 2025. In 2026, Participant B’s Age-Based Contributions to the Plan in excess of the Regular Limit may be any combination of 457b Pre-Tax or 457b Roth, up to Participant B’s Age-Based Catch-Up Contribution Limit.Participants will need to take action once the Bureau of Deferred Compensation stops their Pre-Tax Contributions after they reach their limit. Two pay cycles before a Participant is anticipated (based on current Contribution Amount) to meet the limit, Pre-Tax Contributions will be automatically set to stop or reduce to an amount that meets the Regular Limit. At that time, Participants will be notified via email (or mail if no email address is on file) of the adjustment and be directed to add or increase their Roth Contribution election to continue to utilize the Catch-Up Limit. If no adjustment is made, only the active Roth Contribution election will continue for the duration of the current Tax Year.
IMPORTANT NOTE:
The Bureau will not automatically convert Pre-Tax Contributions to Roth, nor will it automatically increase Roth Contributions. Participants wanting to make Roth Contributions can simply increase their Roth Contribution via the Bureau’s website (MyFloridaDeferredComp.com). No additional enrollment is required.INVESTMENT OPTIONS
TRANSFERS (ROLL-INS, SUPPLEMENTAL PAY, AND CONVERSIONS)
Accrued leave payments may be invested into the Plan as 457b Pre-Tax or 457b Roth payroll contributions—provided the annual contribution limit is not exceeded.
457b Pre-Tax accrued leave payments are subject to Social Security and Medicare taxes. The portion of your payment held for Social Security and Medicare taxes is considered taxable income and will be subject to Federal Income Tax. The State Payroll System uses a formula that satisfies these tax requirements and calculates the maximum possible accrued leave contribution. The amount deferred will not be subject to Federal Income Tax.
If you elect to contribute your leave payout as a 457b Roth contribution, the entire contribution will be taxed as income and will be subject to Social Security, Medicare, and Federal Income Tax.DISTRIBUTIONS
A qualified distribution is generally a distribution that is made after a 5-taxable-year period of participation and is either made on or after the date you attain age 59 ½, made after your death, or attributable to your being disabled.
If a distribution is made to your alternate payee or beneficiary, then your age, death, or disability is used to determine whether the distribution is qualified. The only exception is when the alternate payee or surviving spouse rolls over the distribution to his or her own employer’s designated Roth account, in which case, their own age, death, or disability is used to determine whether the distribution is qualified.
A qualified distribution from a 457b Roth account is not included in your gross income.The 5-taxable-year period of participation begins on the first day of the taxable year for which you first made 457b Roth payroll contributions to the Florida Deferred Compensation Plan. It ends when five consecutive taxable years have passed. If you make a direct rollover from a designated Roth account under another plan, the 5-taxable-year period for the recipient plan begins on the first day of the taxable year that you made designated Roth contributions to the other plan, if earlier.
If you are a re-employed veteran making 457b Roth contributions, your 457b Roth contributions are treated as made in the taxable year of qualified military service that you designate as the year to which the contributions relate.
Certain contributions do not start the 5-taxable-year period of participation. For example, a year in which the only contributions consist of excess deferrals will not start the 5-taxable-year period of participation.If you take a distribution from your 457b Roth account before the end of the 5-taxable-year period, it is a nonqualified distribution. You must include the earnings portion of the nonqualified distribution in gross income. However, the basis (or contributions) portion of the nonqualified distribution is not included in gross income.
If you take a distribution from 457b Roth conversions, within 5 years of that conversion, it may be subject to a 10% recapture tax. Contact your Investment Provider for additional information.- Periodic Distribution (on a schedule)
- Partial Distribution (taken when needed)
- Full Distribution (liquidate the account)
- Roll Out (move out of the Plan)
A Participant must start RMDs for their 457b Pre-Tax account on April 1st of the calendar year following the year of reaching age 73*, then every year thereafter. However, if a Participant is still employed by the State of Florida when they turn 73*, they are not required to begin a distribution and can continue to make payroll contributions to the Plan. Please see your tax advisor for additional information.
RMDs do not apply to 457b Roth accounts during the life of the owner.
*The SECURE Act may impact certain employees. Please contact your Investment Provider for more information.
This website is intended to provide information about the State of Florida's Government Employees Deferred Compensation Plan. It is not intended as investment, legal, or accounting advice. If investment advice or other expert assistance is required, the services of a competent professional should be sought. For changes to your account, go to your Investment Provider's website and log in using the ID and password you created for that Investment Provider.