AK SB67

Establishes a Roth contribution option within Alaska's public employees' deferred compensation program, allowing employees to make after-tax contributions in addition to or instead of traditional pre-tax deferred contributions.

Employees must affirmatively elect to make Roth contributions; contributions default to deferred tax contributions in the absence of an election.

Combined deferred tax and Roth contributions cannot exceed the Internal Revenue Code limit under 26 U.S.C. 402(g) for each calendar year, with excess contributions distributed by April 15 after the plan year.

Excess contributions must be reduced first from deferred tax contributions, then from Roth contributions if necessary, protecting the Roth election.

Roth and deferred tax contributions are maintained in separate accounts, and the administrator may establish additional rules for election timing and procedures; effective July 1, 2015.