DRS Notice 23-007, Preparing for October DCP Roth Option
Date: July 6, 2023
Applies to: All DCP Employers
Subject: DRS Notice 23-007, Preparing for October DCP Roth Option
Effective October 1, DCP will include a Roth option. Customers will be able to choose between pretax and Roth contributions, or a combination of both when saving through DCP. Pretax contributions are made before taxes, and tax is due on withdrawn amounts. Customers make Roth contributions using taxed income, which allows the withdrawals to be tax-free if the Roth balance has remained in the account for five years.
Here is additional information to help you prepare for the upcoming change:
New Roth information for your employees
The DCP introduction page and its corresponding one-page flyer have been updated to reflect the new Roth option as well as provide a high level overview of DCP basics to employees. Links to customer education are also available from this page. You can share these resources with your employees.
File upload support
DRS is ready to support employers who want to test their file layout changes for DCP. DRS will facilitate a simulated file upload for these employers in DRS’ testing environment to confirm the file meets the new reporting requirements. To request a test of your file layout changes, email DRS at firstname.lastname@example.org with DCP TEST in the subject line. A DRS employer support specialist will reply to your email to begin coordinating the test of your file.
Employer education schedule
We have the following upcoming education sessions for Roth readiness. This education will include the basics of DCP Roth and cover questions you might receive from your employees.
Roth education session for employers
- Tue 8/1/2023 @ 9am https://us02web.zoom.us/j/83417135830
- Thu 8/24/2023 @ noon https://us02web.zoom.us/j/84669370110
- Wed 9/6/2023 @ 3pm https://us02web.zoom.us/j/89710164592
This education is for employers. Employee Roth webinars are scheduled separately.
Now through September 2023
- DRS will begin delivering education and training to employers
- DRS will accept test files in preparation for DCP reporting
October 1, 2023 – Roth will become an available option for DCP participants. This will include access to enrollment, contribution changes to Roth, conversions from pretax to Roth and eligible rollovers into DCP Roth for participants.