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Department of Employee Trust Funds
August 11, 2011

WDC Roth Option Now Available

Now you can make Wisconsin Deferred Compensation contributions with after-tax dollars, as opposed to just pre-tax.

The WDC Roth option allows you to contribute to your WDC account with after-tax dollars. No taxes are withheld from your Roth contributions or their earnings when you take a distribution, as long as you hold the Roth for five years, attained the age of 59½ and have a qualifying reason. You may designate all or a portion of your WDC contributions as a Roth deferral. The WDC Roth deferral allows you to pay taxes on your contributions when they are contributed. The WDC Roth deferral essentially “locks in” today’s tax rates on your contributions. If you expect to be in a higher tax bracket when you retire, Roth contributions may also make sense. You may contribute a maximum of $16,500* to your WDC account. That includes both before- and after-tax contributions. You may also roll over designated Roth 401(k), Roth 457 or Roth 403(b) plan amounts to the WDC.

You may take your Roth account funds after the Roth account has been established for at least five tax years and you either:

  • reach age 59½;
  • retire;
  • separate from service; or
  • become disabled.

Note: If you take a distribution before you’ve held the Roth monies for five years, your account earnings are subject to ordinary income tax (state and federal).

If you have more questions or would like additional information about the WDC Roth feature, please review the Roth information on the WDC's website at or contact the WDC directly at (877) 457-9327, option 0, to speak to a WDC representative anytime between 7 am and 7 pm, Monday through Friday.


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