Voluntary Retirement Plans
Human Resources
The Roth Contribution Option
Looking to boost your retirement nest egg or reduce your taxable income during retirement?
Effective January 1, 2026, SMCCCD employees may now choose to make Roth contributions to both the 403(b) and 457(b) plans. A Roth option permits you to:
- Contribute after-tax dollars now.
- Take tax-free distributions later (if qualified conditions are met).
- Reduce taxable income during retirement and possibly help reduce taxation of Social Security benefits.
Voluntary Savings Plans (403b & 457b)
SMCCCD offers two voluntary defined contribution plans to help you save for the future. You may contribute to one or both plans simultaneously.
View Comparison Chart (403b vs 457b)
403(b) Retirement Savings Plan
Visit 403bCompare to view approved vendors and plan details.
457(b) Retirement Savings Plan
Offers a separate limit from the 403(b), doubling your savings capacity. Managed directly through District forms.
2026 Contribution Limits
Note: High earners (wages >$150,000 in 2025) must make Age 50+ catch-up contributions as Roth contributions starting in 2026.
| Contribution Type | 2026 Limit (Per Plan) |
|---|---|
| Standard Annual Limit (Under Age 50) |
$24,500 |
| Age 50+ Catch-Up (Age 50 or older by 12/31/2026) |
$32,500 ($24,500 + $8,000 catch-up) |
| Special Catch-Up (Ages 60, 61, 62, 63) |
$36,500 ($24,500 + $12,000 catch-up) |
457(b) Note: 457(b) participants within 3 years of normal retirement age may be eligible for a distinct "Traditional 3-Year Catch-Up" (up to $49,000 in 2026). You cannot use both the Age 50+ (or Age 60-63) catch-up and the 3-Year catch-up in the same year.
How to Enroll or Change Contributions
Enrollment for both Pre-Tax and Roth options follows the same simplified process.
- Select a Vendor: Ensure your account is open with an approved vendor (for 403b) or the District plan (for 457b). All current vendors support the new Roth option.
- Submit Agreement (Sign up, Change, or Cancel):
- 403(b): Use the Online Salary Reduction Agreement Form.
- 457(b): Download the PDF form from the HR Downloads page.
- Make Your Election: Indicate the amount and check the appropriate box for either Pre-Tax or Roth.
- Submit: Online 403(b) forms are processed automatically; 457(b) PDF forms must be returned to the Payroll Department.
Roth Option: Frequently Asked Questions
What is a Roth contribution and when is it available?
A Roth contribution is made on an after-tax basis. While contributions are not tax-deductible today, qualified withdrawals of both contributions and earnings are generally tax-free in retirement. The option is available effective January 1, 2026 for both 403(b) and 457(b) plans.
Who should consider Roth contributions?
We encourage you to carefully assess the advantages based on your personal financial situation. A Roth account generally appeals to those who:
- Expect to be in a higher tax bracket in retirement than they are now.
- Want tax diversity (having both taxable and tax-free buckets of money) and flexibility in retirement.
- Are financially stable, but expect general tax rate increases in the future.
- Cannot contribute to a Roth IRA due to income limits.
Employees should consider consulting a financial or tax advisor.
Does choosing Roth affect my total contribution limit?
No. Roth and pre-tax contributions are combined and count toward the same annual IRS contribution limit for that specific plan (e.g., the $24,500 limit for the 403(b) includes both your pre-tax and Roth 403(b) contributions combined).
Do Roth rules differ between the 403(b) and 457(b)?
The basic Roth tax treatment is the same; however, distribution timing and penalties differ. Notably, for 457(b) plans, distributions taken after separation from service are generally not subject to the 10% early withdrawal penalty, regardless of age (though taxes on earnings may apply if it's not a "qualified" Roth distribution).