Invest for tax-free retirement income through SDRS-SRP
Continuing its role as one of the nation’s leading public employee retirement systems, the South Dakota Retirement System’s Supplemental Retirement Plan (SDRS-SRP) now welcomes after-tax Roth 457 contributions. This means workers whose employers have adopted the Roth option can plan now to take withdrawals in retirement, tax-free.
How does Roth work ?
You may elect to designate some or all of your contributions to your SDRS SRP account as Roth contributions. Roth contributions will be made after federal taxes have been applied to your income, which would not be taxable at withdrawal. Any earnings on those invested contributions also would not be taxable at withdrawal.
For withdrawals to be tax-free, federal law requires that all designated Roth contributions must be held in the Roth account for five consecutive years after the first Roth contribution is made, and the distribution must be made after age 59½; or for death, disability or a rollover to a Roth IRA.
Why Roth through SRP?
Through the SDRS SRP, you can take advantage of the Roth option with 457(b) contribution limits that currently are much higher than available through an IRA. And, you get all the other benefits of SRP participation, including:
- Group buying power for potentially lower pricing than you might find outside of the SRP.
- Monitored funds to help ensure they’re suitable for long-term retirement investing.
- Nationwide Retirement Specialists as SRP representatives – They know the SRP inside and out.
You can read more about Roth 457 in the Learning Center.
Sign up for Roth
Roth 457 may not be for everyone. If you decide that it may be right for you, follow the instructions on the Participation Agreement. (PDF)
If you need assistance, call the SDRS office in Pierre at 605-224-2230.