This bill amends the General Laws to allow state employees to make after-tax contributions to a qualified Roth contribution program as part of a deferred compensation plan. The bill states that the deferred compensation program will exist in addition to retirement, pension, or benefit systems established by the state, and that deferral of income under the program will not affect any retirement, pension, or other benefit provided by law. The bill also specifies that any sum deferred under the program will not be subject to taxation until distribution is actually made to the employee, except in cases where the program includes a qualified Roth contribution program and the sums have been deferred as a designated Roth contribution. In those cases, the sums will be deferred post-tax. The bill defines a qualified Roth contribution program as a program that allows employees to make designated Roth contributions in lieu of elective deferrals under the deferred compensation program, and requires separate accounts and recordkeeping for these contributions. The bill will take effect upon passage.

Statutes affected:
714: 36-13-6