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Bill

SPB 7010

Roth Contribution Plans in Deferred Compensation Programs

2026 Regular Session

Florida bill allows public employees to make tax-free Roth contributions to deferred compensation plans alongside traditional pre-tax retirement savings options.

Submitted as Committee Bill and Reported Favorably by Governmental Oversight and Accountability; YEAS 7 NAYS 0
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Bill Summary · SPB 7010

Legislative bill overview

SPB 7010 expands Florida's deferred compensation programs by allowing public employees to make Roth contributions in addition to traditional pre-tax contributions. Roth accounts allow employees to contribute after-tax dollars now in exchange for tax-free withdrawals in retirement. The bill has passed its first committee unanimously.

Why is this important

This change provides Florida public employees with greater retirement savings flexibility and tax planning options. Employees can choose between immediate tax deductions (traditional) or tax-free growth (Roth) based on their personal circumstances and income expectations, potentially resulting in significant long-term tax savings for some workers.

Potential points of contention

  • State revenue impact: Roth contributions reduce current taxable income for participants, potentially lowering state tax revenue in the short term, though this is offset by tax-free withdrawals later
  • Administrative complexity: Roth accounts require different tracking and compliance procedures than traditional plans, increasing administrative costs for plan sponsors
  • Income limits and eligibility: The bill's specific provisions on who can contribute and contribution limits are not detailed in available information, which could affect fairness or accessibility for different employee groups

Compiled from official sources — confirm details with the bill’s official record.

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