The Expanding List of NYC Deferred Compensation Plans

Recently, the NYC Deferred Compensation Plan began to offer a Roth 457(b) retirement plan.  With this latest addition, the City of New York now has seven (7) different retirement plans to choose from:

    • 457(b)
    • 401(k)
    • 401(a)
    • Roth 401(k)
    • Roth 457(b)
    • NYC IRA
    • NYC Roth IRA

All of the plans are unique from both an income tax and retirement planning perspective.  For NYC employees who anticipate receiving a significant pension benefit; the retirement plans with a Roth feature [Roth IRA, Roth 457(b), & Roth 401(k)] may be worthwhile.  One noteworthy feature of the Roth 401(k) and Roth 457(b) is that there are no income limits regarding the eligibility to make contributions.