Board of Estimate & Contract:
RESOLVED, that an ordinance adopted by the City Council on February 14, 2024, and signed by the Mayor on February 15, 2024, authorizing the implementation of ROTH IRA Payroll Deduction Option, be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE
IMPLEMENTATION OF ROTH IRA
PAYROLL DEDUCTION OPTION
Whereas, by letter dated January 31, 2024, the Comptroller has requested legislation authorizing the implementation of the Roth IRA Payroll Deduction Option for employees, allowing for the collection of post-tax Roth IRA contributions as a second option to pre-tax Traditional contribution withholdings; and
Whereas, the Consolidated Appropriations Act of 2023 introduced provisions to encourage retirement savings by requiring Roth IRAs to be offered as a retirement option alongside Traditional IRAs; and
Whereas, the Internal Revenue Service announced an administrative transition period for the implementation of SECURE 2.0, requiring participants whose FICA earnings exceeded $145,000 in the prior year to make age 50 catch-up contributions as Roth, with compliance required by December 31, 2025; and
Whereas, it is recommended by the Comptroller's Office to establish legislation permitting the collection of post-tax Roth IRA contributions as a second option to pre-tax Traditional contribution withholdings, facilitating employee enrollment and payroll deductions for such contributions; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain, and enact:
Section 1. Implementation of ROTH IRA Payroll Deduction Option. The City of Mount Vernon hereby implements the Roth IRA Payroll Deduction Option for employees, allowing for the collection of post-tax Roth IRA contributions as a second option to pre-tax Traditional contribution withholdings.
Section 2: Compliance with SECURE 2.0. The implementation of the Roth IRA Payro...
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