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Board approves amendment to township 457(b) plan to allow Roth contributions
Summary
West Goshen supervisors unanimously approved an amendment to the township’s 457(b) deferred compensation plan to permit Roth (after‑tax) contributions, a change presented by Ellis Investment Partners as cost‑free to the township and necessary to accommodate Secure Act 2.0 catch‑up rules.
The West Goshen Township Board of Supervisors voted unanimously on June 16 to amend the township’s 457(b) deferred compensation plan to allow Roth contributions.
Manager Chris introduced Drew Schafer from Ellis Investment Partners, which administers the township plan. Schafer told the board the change modernizes the plan, gives participants flexibility to choose an after‑tax (Roth) option that grows tax‑free, and is required for certain age‑based catch‑up contributions under Secure Act 2.0 for individuals earning above specified thresholds. "It's no cost to the township," Schafer said, adding the amendment is an administrative change to let participants elect Roth deferrals.
Supervisors asked whether Roth contribution rules for the 457(b) mirror Roth IRAs and 401(k)s; Schafer said the 457 instrument allows Roth deferrals without IRA income limits and that the plan’s contribution limits remain higher than IRAs. With no public comment on the motion the board approved the amendment by voice vote, recorded as passing 5‑0.
The township does not provide matching contributions to the 457(b); the change affects only employee payroll deferrals and will require plan documentation updates and participant notices.
