RSA-1
RSA-1 is a voluntary, supplemental, deferred compensation plan administered by the Retirement Systems of Alabama (TRS). As explained in the , by contributing pre-tax dollars, a member lowers his/her taxable income and reduces the amount of taxes they pay. RSA-1 is deductions are available via payroll deduction which makes saving easy and convenient. There is no minimum contribution amount, and the contributions may be increased, decreased, or stopped at any time and as often as desired by the member.
Roth 457(b) - New!
This is a voluntary after-tax contribution option to which members can contribute funds from their paycheck that have already been taxed. They would then pay no taxes on the qualified distributions withdrawn during retirement, including earned interest. An additional benefit is that there is no required minimum distribution.
Pre- or Post-tax? Participants choose whether the deferrals are to be deducted on a pre-tax or post-tax (Roth) basis OR a combination of the two. Should I choose Roth deferrals (post-tax) or pre-tax deferrals? This is a determination you must make, and it is dependent on your retirement goals and current financial needs. It is best to consult a financial advisor when making this decision, but this contains some online information to help you understand the differences and make a determination that is best for you.
The maximum amount a member may defer per year is 100% of his/her includable compensation reduced by other tax-deferred retirement contributions and pre-tax salary reductions, but not more than the following annual contribution maximums:
Annual Contribution Maximum
Year: 2024
Under Age 50: $23,000
Age 50 and Over: additional $7,500
Total: $30,500
Year: 2025
Under Age 50: $23,500
Age 50 and Over: additional $7,500
Total: $31,000
To begin participation in the plan, an RSA-1 Enrollment Packet must be completed and presented to the HR office for notarization and forwarding to Payroll for processing.
If you are a current RSA-1 participant and want to make changes to your payroll contribution amount, please complete this and forward to the Payroll Office.
For all other changes or for more information regarding RSA-1, please visit the RSA website at .
More information regarding RSA-1 can be obtained on the TRS website at .