401(k)/457 Plans (PERAPlus) for Employers
In the 2026 legislative session, House Bill 26-1026 was passed requiring all PERA affiliated employers to offer the PERAPlus 457 Plan and the Roth options for both the PERAPlus401(k) and PERAPlus 457 Plans by January 1, 2027. Learn more: Resources to Help Your Employees Understand New PERAPlus Plan Options.
Two key provisions of the SECURE 2.0 Act impacting PERA-covered employers become effective in 2025 and 2026. Learn more: SECURE 2.0 Act Resources for Employers.
The PERAPlus 401(k) and 457 Plans allow employees to save for retirement beyond their Colorado PERA benefit. All PERA employers offer the PERAPlus 401(k) Plan, but beginning January 1, 2027, employers are required to also offer the PERAPlus 457 Plan and a Roth option. If you already offer these options, you still need to establish a process for processing contributions for the 457 Plan, Empower will no longer be managing enrollments and contribution changes.
PERAPlus 401(k) Plan
The PERAPlus 401(k) Plan 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.
PERAPlus 457 Plan
The PERAPlus 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.
Roth Option
The PERAPlus 401(k) and 457 Plans offer a Roth option. 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. Beginning January 1, 2027, Roth options are required to be offered for both the PERAPlus 401(k) and 457 Plans.
Get Started
With the new requirement of HB26-1026 approaching on January 1, 2027, it’s recommended that employer looking to affiliate with the 457 Plan and/or Roth options proceed with the preparing using the new requirements.
Communications Toolkits
You can customize and share the following language through an email, employee newsletter, or other internal communication channel. Select the title that matches what you currently offer.
Has 457 Plan and Roth
As a Colorado PERA member, you have access to the suite of retirement savings options including the PERAPlus 401(k) and 457 Plans. These plans also allow you to elect traditional (pre-tax) or Roth (post-tax) options. If you currently have a 457 Plan or are considering enrolling, the process for signing up and managing will change starting in 2027.
The PERAPlus 401(k) and 457 Plans have different features and rules that may be important when considering your retirement savings options.
Roth is an option for these plans that affects how the taxes will be treated on them. Traditional 401(k) and 457 contributions are made pre-tax, which means they are contributed before taxes are taken out of the contributions. When you take out payments in your retirement from your traditional 401(k) or 457 plan, taxes will be owed on the amounts. Roth is a post-tax plan where taxes are taken before the contributions are made. This results in tax-free withdrawals upon retirement.
To help you understand the differences, PERA has a side-by-side comparison of the available plans and contribution types.
Review the PERAPlus 401(k) and 457 Plan comparison to learn more about the differences between the plans, including contribution options, catch-up provisions, distribution rules, and other important features.
Additionally, the enrollment and deferral change process for the PERAPlus 457 Plan is moving from Empower to our payroll system in January 2027! More information about how to enroll or make changes to your contributions will be provided by us. Starting December 2026, we will be accepting enrollments and deferral changes that are effective January 2027.
PERA offers live webinars and on-demand videos to help you learn more about your PERA benefits. You can register here: Webinar Registration – Zoom, or watch an On Demand Video here.
Has 457 Plan but not Roth
New PERAPlus savings options offered through Colorado PERA are coming January 1, 2027!
Beginning January 1, 2027, you will have additional options to save for your retirement the PERAPlus Plans.
For the PERAPlus 401(k) and 457 Plans, you will now be able to choose whether your contributions to either plan are made on a traditional pre-tax or Roth (post-tax) basis.
The PERAPlus 401(k) and 457 Plans have different features and rules that may be important when considering your retirement savings options. There are also tax implications for traditional pre-tax and Roth options that may be important to consider depending on your financial needs. To help you understand the differences, Colorado PERA has a side-by-side comparison of the available plans and contribution types.
Review the PERAPlus 401(k) and 457 Plan comparison to learn more about the differences between the plans, including contribution options, catch-up provisions, distribution rules, and other important features.
PERA offers live webinars and on demand videos to help you learn more about your PERA benefits. You can register here: Webinar Registration – Zoom, or watch an On Demand Video here.
Additionally, the enrollment and deferral change process for the PERAPlus 457 Plan is moving from Empower to our payroll system in January 2027! We will provide additional information about how to enroll and make changes to your contributions as it becomes available. Starting December 2026, we will be accepting enrollments and deferral changes that are effective January 2027.
Does not have 457 Plan or Roth
New PERAPlus savings options offered through Colorado PERA are coming January 1, 2027!
Beginning January 1, 2027, you will have additional options to save for your retirement through the PERAPlus Plans.
In addition to the PERAPlus 401(k) Plan, you will have access to the PERAPlus 457 Plan. You will also be able to choose whether your contributions to either plan are made on a traditional pre-tax or Roth (post-tax) basis.
The PERAPlus 401(k) and 457 Plans have different features and rules that may be important when considering your retirement savings options. To help you understand the differences, Colorado PERA has a side-by-side comparison of the available plans and contribution types.
Review the PERAPlus 401(k) and 457 Plan comparison to learn more about the differences between the plans, including contribution options, catch-up provisions, distribution rules, and other important features.
PERA offers live webinars and on-demand videos to help you learn more about your PERA benefits. You can register here: Webinar Registration – Zoom or watch an On Demand Video here.
We will provide additional information about how to enroll and make changes to your contributions as it becomes available.
Has Roth but not 457 Plan
New PERAPlus savings options offered through Colorado PERA are coming January 1, 2027!
Beginning January 1, 2027, you will have additional options to save for your future through the PERAPlus Plans.
In addition to the PERAPlus 401(k) Plan, you will have access to the PERAPlus 457 Plan. You will also be able to choose whether your contributions to either plan are made on a traditional pre-tax or Roth (post-tax) basis.
The PERAPlus 401(k) and 457 Plans have different features and rules that may be important when considering your retirement savings options. To help you understand the differences, Colorado PERA has a side-by-side comparison of the available plans and contribution types.
Review the PERAPlus 401(k) and 457 Plan comparison to learn more about the differences between the plans, including contribution options, catch-up provisions, distribution rules, and other important features.
PERA offers live webinars and on-demand videos to help you learn more about your PERA benefits. You can register here: Webinar Registration – Zoom or watch an On Demand Video here. If you would like to participate in the PERAPlus 457 Plan, you will be able to start contributing to this plan effective January 1, 2027.
We will provide additional information about how to enroll and make changes to your contributions as it becomes available.
Contact the PERA Defined Contribution Team for more information.
Contact the Employer Relations team for questions on how to report these contributions to PERA: