Department of Accounts Payroll Bulletin Calendar Year 2015 July 1, 2015 Volume 2015-07 Roth 457 Additional – The Payroll Bulletin is published In This Issue of Supplemental Retirement periodically to provide CIPPS agencies the Payroll guidance regarding Commonwealth payroll Option Bulletin….... operations. If you have any questions about 2015 Payroll Conference the bulletin, please call Cathy McGill at (804) 371-7800 or Email at State Payroll Operations Director Lora L. George Assistant Director Cathy C. McGill Roth 457 Additional Supplemental Retirement Option – Roth 457 Effective July 1 a Roth contribution option is available to all participants in the – Deduction Commonwealth of Virginia 457 Deferred Compensation Plan. These are contributions 052 that employees make to their 457 Plan accounts on an basis. Employees pay after-tax taxes on the contributions now, rather than later. Employees may withdraw their Roth assets, which includes both their Roth contributions and any associated earnings, on a basis, as long as certain criteria are met. tax-free Deduction 052, ROTH 457, has been established to accommodate post-tax 457 contributions. As with existing 457 retirement deductions (deferred compensation or hybrid voluntary), ICMA is the administrator for Roth post-tax contributions. The new deduction will be included in the monthly enrollment/changes file beginning with the pay period of July 25 through August 9, 2015. Report The addition of the Roth 457 deduction impacts several existing reports. In addition to Changes the standard system reports, deduction 052 will appear as a line-item on the following reports: Report U002, SUSPENSE RECONCILIATION REGISTER Report U023, SUMMARY OF PAYROLL EXPENDITURES Report U062, DC/CIPPS DEFERRED COMP/CASH MATCH UPDATE LISTING Report U063, DC/CIPPS DEFERRED COMP/CASH MATCH ERROR REPORT Report U149, CASH MATCH (DED 45 + 46) DISCREPANCY LISTING Continued on next page Roth 457 Additional Supplemental Retirement Option, – continued
Department of Accounts Payroll Bulletin Calendar Year 2015 July 1, 2015 Volume 2015-07 In This Issue of the Payroll Bulletin….... Roth 457 – Additional Supplemental Retirement Option 2015 Payroll Conference The Payroll Bulletin is published periodically to provide CIPPS agencies guidance regarding Commonwealth payroll operations. If you have any questions about the bulletin, please call Cathy McGill at (804) 371-7800 or Email at State Payroll Operations Director Lora L. George Assistant Director Cathy C. McGill Roth 457 – Additional Supplemental Retirement Option Roth 457 – Deduction 052 Effective July 1 a Roth contribution option is available to all participants in the Commonwealth of Virginia 457 Deferred Compensation Plan. These are contributions that employees make to their 457 Plan accounts on an after-tax basis. Employees pay taxes on the contributions now, rather than later. Employees may withdraw their Roth assets, which includes both their Roth contributions and any associated earnings, on a tax-free basis, as long as certain criteria are met. Deduction 052, ROTH 457, has been established to accommodate post-tax 457 contributions. As with existing 457 retirement deductions (deferred compensation or hybrid voluntary), ICMA is the administrator for Roth post-tax contributions. The new deduction will be included in the monthly enrollment/changes file beginning with the pay period of July 25 through August 9, 2015. Report Changes The addition of the Roth 457 deduction impacts several existing reports. In addition to the standard system reports, deduction 052 will appear as a line-item on the following reports: Report U002, SUSPENSE RECONCILIATION REGISTER Report U023, SUMMARY OF PAYROLL EXPENDITURES Report U062, DC/CIPPS DEFERRED COMP/CASH MATCH UPDATE LISTING Report U063, DC/CIPPS DEFERRED COMP/CASH MATCH ERROR REPORT Report U149, CASH MATCH (DED 45 + 46) DISCREPANCY LISTING Continued on next page Roth 457 – Additional Supplemental Retirement Option, continued
2015_07.docx