Accounts and Reports

DATE:	November 10, 2010
SUBJECT:	New VTSA Roth 403(b) After-Tax Investment Option
EFFECTIVE DATE:	January 1, 2011
A & R CONTACT:	Earl Brynds	(785) 296-5376	(Earl.Brynds@da.ks.gov)
APPROVAL:
SUMMARY:	New Plan Type, Benefit Plans and Deduction Code for Voluntary Tax Sheltered Annuity Roth 403(b) Investment Option

The Kansas Board of Regents (KBOR) has approved the recommendation to add a Roth 403(b) after-tax investment option as part of the voluntary retirement plan (VTSA). Only Regent university employees as well as employees of the KBOR office (agency 561) will be eligible to participate in the new Roth after-tax option. Eligible employees will have the flexibility to participate in either the current before-tax option, the new after-tax option, or both options concurrently. Employee contributions made under the after-tax investment option will not be reported on the employee’s W-2 per IRS regulations. Seven investment companies who currently offer the before-tax option will also offer the Roth 403(b) after-tax option and are listed in the table below.

To implement the new after-tax option, a new benefit plan type, a new payroll deduction code and new benefit plans will be added to SHARP effective for the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011.

The new Benefit Plan Type, VTSA deduction code and benefit plans are:

The Department of Administration is responsible for making the necessary updates to the SHARP payroll system and for remitting these new VTSART payroll deductions for employees of the KBOR office (agency 561). Regents’ institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above and for remitting these new VTSART payroll deductions for their impacted employees.

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Page last modified on:  June 22, 2012