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Perry council approves Roth 401(k)/457 options for employees
Summary
The council adopted Resolution 2026‑06 to add Roth 401(k) and Roth 457 options to the city’s employee savings plans; the existing employer match (2% if the employee contributes 4%) remains unchanged and will continue to go into the traditional 401(k).
The Perry City Council on Feb. 26 approved a resolution to allow employees the option of contributing to Roth versions of the city's 401(k) and 457 plans.
Staff explained the Roth options let employees make after‑tax contributions that grow tax‑free and can be withdrawn tax‑free in retirement. “Basically, it is money that they put in post tax. So they pay taxes, it would grow, and then when they can pull that back out, they don't have to pay it at retirement,” Shanna (city recorder) told the council.
Shanna also confirmed the city's existing employer match remains unchanged: if an employee contributes 4% the city contributes a 2% match, and the employer portion continues to be deposited to the traditional 401(k). The council approved Resolution 2026‑06 (with an administrative date correction noted during the meeting) by roll call; the minutes record Council members Walker, Osler, Wright and Tueller as voting in favor.
Staff said there is no additional cost to the city to offer the Roth options and that payroll administration will be handled using percentage elections to keep implementation straightforward.
