Calpers required minimum distribution

Helping your employees understand
the Roth contribution option

The CalPERS 457 Plan will add the Roth contribution option for all agencies effective January 1, 2024. The Roth contribution option gives your employees more flexibility when saving for retirement. It doesn’t change how much they can contribute or where they can invest it, but it does give them more control over when contributions and retirement income will be subject to federal income tax.

If your agency will have Roth added to the CalPERS 457 Plan as of January 1st, or you would like a refresher on the Roth contribution option for employees, CalPERS has resources to help you and them.

• The Roth Contribution Option Overview includes an overview of making Roth after-tax contributions and features a Frequently Asked Questions page to help participants understand how it works.
• The Roth Option Flyer provides a comparison of pre-tax vs. Roth after-tax saving to the CalPERS 457 Plan to help participants decide which option is right for them.
• The Roth Plan Option Brochure, also available in Spanish, provides a more detailed comparison of pre-tax vs. Roth after-tax saving, including profiles of employees who may prefer one option more than the other. It also includes a short questionnaire to help an employee determine if the Roth option may make sense.

Agency resources are also available to help you add Roth after-tax contributions to a CalPERS 457 Plan Payroll Report. Email us or call 800-696-3907 for help to be prepared to process Roth contributions starting January 1.

Required Minimum Distribution changes for 2023

As a result of the SECURE 2.0 Act, the required age for a Required Minimum Distribution (RMD) beginning date increased for participants and spousal beneficiaries of a participant that died prior to reaching the RMD beginning date.

• The new RMD age is age 73 for an individual who attains age 72 after December 31, 2022 and before January 1, 2033. The RMD age will be age 75 for an individual who attains age 74 after December 31, 2032.

This year, RMD-eligible CalPERS 457 Plan participants were first notified about their RMD requirement in March. They were then mailed a reminder notice in October. If a participant’s calculated 2023 RMD is not taken before December 7, Voya will process a gross distribution less any gross distributions made during the year.

If your participating employees have any questions about Required Minimum Distributions, please direct them to call the Plan Information Line at 800-260-0659.

It is vital to let the CalPERS 457 Plan team know when there are changes to your personnel. Let’s work together to ensure that we have updated records of your agency’s points of contact, their roles, and how to reach them by phone and email.

Please report any changes to the CalPERS 457 Plan team as soon as possible by contacting:
calpers_457_plan@calpers.ca.gov