CA SJR30

Urges Congress and the President to amend the Internal Revenue Code to allow 457(b) deferred compensation plan participants to treat elective deferrals as designated Roth contributions.

Seeks parity with other retirement savings options, specifically the Economic Growth and Tax Reconciliation Act of 2001 (401(k) plans) and the federal Thrift Savings Plan, which already offer Roth contribution options.

Designated Roth contributions would allow employees to make after-tax contributions in exchange for tax-free distributions upon retirement.

Estimates that allowing 457(b) Roth contributions nationwide could generate approximately $1 billion in federal taxes over a 10-year period.

Affects approximately 269,000 eligible state employees and 1.08 million eligible local government employees in California who participate in 457(b) plans.