Enrollment in the PERAPlus 401(k) and 457 voluntary retirement savings plans is available at any time. Both plans offer the same PERAdvantage investment options and Empower Retirement is the recordkeeper for both plans.
What is the PERAPlus 401(k) Plan?
With the PERAPlus 401(k), you can save additional money for retirement on top of what you contribute to your Defined Benefit (DB) or Defined Contribution (DC) account. Your contributions are automatically taken out of your paycheck and your employer may also make matching contributions on your behalf. You can choose from a selection of investment funds, including funds designed to become less risky (not as likely to be affected by ups and downs in the stock market) as you approach your projected retirement date.
A 401(k) is a tax-deferred (pre-tax) account, meaning you don't pay tax on the money you contribute; you'll only pay income tax on withdrawals you make from your account. However, a Roth (tax-paid) option is available (see below).
If you withdraw money from a 401(k) before age 59 1/2, you may be subject to a 10 percent early withdrawal tax penalty.
How to enroll
Enrollment in the PERAPlus 401(k) Plan is available for all employees of a PERA employer.
- Begin by completing the PERAPlus 401(k) Contribution Authorization Form below and giving it to your employer.
- Once your contributions are established with your employer, you will be able to set up your PERAPlus account at coperaplus.org.
- If you are working for a PERA-affiliated employer but are not a PERA member, you may enroll by completing the PERAPlus 401(k) Participant Information Form below.
What is the PERAPlus 457 Plan?
In addition to the PERAPlus 401(k) Plan, you may be eligible to contribute to the PERAPlus 457 Deferred Compensation Plan. The 457 Plan includes the same investment fund options as the PERAPlus 401(k) Plan.
A 457 plan is also a tax-deferred (pre-tax) account, and a Roth option is available as well (see below).
Unlike a 401(k), withdrawals from a 457 account are not subject to an early withdrawal penalty; however, you will still owe income tax on any withdrawals, regardless of when you make them.
How to enroll
- Begin PERAPlus 457 Plan enrollment.
- If you are working for a PERAPlus 457 Plan affiliated-employer but are not a PERA member, you may enroll by completing the PERAPlus 457 Participant Information Form below.
Participants in the PERAPlus 401(k)/457 and DC Plans will pay Plan Administration and Investment Management Fees. For complete details, review the fact sheet below.PERAPlus 401(k)/457 and DC Plans' Fees
The PERAPlus 401(k) and 457 Plans also offer a Roth option that can help participants save toward the future and may also provide tax-free withdrawals at retirement. Unlike traditional PERAPlus 401(k)/457 pre-tax contributions, Roth contributions are taxed before the money is contributed to the Plan. Any earnings on Roth contributions grow tax-free and distributions will also be free of federal (and where applicable, state and local) income taxes, provided they are qualified distributions. Not all PERA employers offer a Roth option. To find out if a Roth option is available to you, please contact your employer or the PERAPlus Team at 303-398-7665 or DefinedContribution@copera.org.
The annual maximum contribution limits for the PERAPlus 401(k) and 457 Plans are:
|2023 Limits||2024 Limits|
|Total Contribution Limit for Each Plan (both Roth and pre-tax contributions count toward this limit)||$22,500||$23,000|
|Catch-Up Contribution Limit (for participants age 50 and older who are contributing the maximum amount to the Plan)||$7,500||$7,500|
Annuity Options Through Your Plans
Now Colorado PERAPlus 401(k), 457 and DC Plan participants have access to two guaranteed income annuity choices. Click here to learn more about the Stable Value Fund fixed annuity option. Click here to review your Qualified Longevity Annuity Contract options via the Colorado PERAPlus Annuity Rollover Marketplace, offered though Blueprint Income.
For more information on this, or any other questions about annuity options, contact Empower at 1‐833‐4‐COPERA.