Deferred Compensation Plan Roth option

The voluntary Deferred Compensation Program (DCP) will offer a Roth contribution option beginning Oct. 1 in addition to the current pre‑tax contribution option. Pre‑tax contributions lower taxable income now, and become taxable when the funds are drawn. Roth contributions are collected after taxes now, and future withdrawals and any associated earnings will not be subject to taxes.

Under the DCP 457b plans, contributions can be as small as $15 or 1% of earnings a pay period, and up to a maximum annual contribution of $22.5K for all employees, with an additional $7.5K for those over 50. The DCP Roth allows for higher contributions than a Roth IRA, and should not be confused with that savings program.

To learn more about the DCP Plan, including the new Roth option, attend a DRS webinar offered in August and September.

DCP is one of two voluntary retirement plans offered at WSU, with the other being the Voluntary Investment Plan (VIP), a 403b plan, with TIAA investment products. All individuals receiving a paycheck through WSU Payroll are eligible to participate in these plans. Visit the Voluntary Investment Plan for additional information, including how to enroll. Since the plans are voluntary, they can be started, stopped, or changed at any time.

Questions can be directed to HRS Benefits, 509‑335‑4521, hrs.benefits@wsu.edu.

The Notices and Announcements section is provided as a service to the WSU community for sharing events such as lectures, trainings, and other highly transactional types of information related to the university experience. Information provided and opinions expressed may not reflect the understanding or opinion of WSU. Accuracy of the information presented is the responsibility of those who submitted it. The self-uploaded posts are reviewed for compliance with state statutes and ethics guidelines but are not edited for spelling, grammar, or clarity.

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