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 Roth contributions and associated earnings are withdrawn tax-free, provided they meet applicable distribution guidelines.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.
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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.
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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
Prior to 2026, employers could choose whether to offer the MNDCP Roth 457 (meaning employees could contribute on a Roth after-tax basis) to their employees.
Due to Provision 603 of the SECURE 2.0 Act (see Provisions Effective January 1, 2026), all employers who offer the MNDCP must allow their employees to contribute on a pre-tax AND/OR Roth after-tax basis.