Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
SF4904 • 2026
Launch Account Contribution Program Act establishment
Launch Account Contribution Program Act establishment
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
-
2026-04-13
House
Withdrawn and re-referred to State and Local Government
-
2026-03-26
House
Introduction and first reading
Official Summary Text
Launch Account Contribution Program Act establishment
Current Bill Text
Read the full stored bill text
A bill for an act relating to retirement; requiring the commissioner of management and budget to establish a program allowing state employees to contribute to a Launch Account and have employer matching contributions to the Minnesota deferred compensation plan be redirected for deposit in a Launch Account; proposing coding for new law in Minnesota Statutes, chapter 43A. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [43A.51] LAUNCH ACCOUNT CONTRIBUTION PROGRAM. new text end new text begin Subdivision 1. new text end new text begin Citation. new text end new text begin This section shall be known and may be cited as the "Launch Account Contribution Program Act." new text end new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section: new text end new text begin (1) the following terms have the meanings given unless the language or context clearly indicates that a different meaning is intended; and new text end new text begin (2) a term defined in section 43A.02 has the same meaning given in that section unless the term is defined in this subdivision. new text end new text begin (b) "Deferred compensation plan" means the Minnesota deferred compensation plan established in section 352.965. new text end new text begin (c) "Employer matching contribution" means a contribution made by a state employee's employer to the employee's deferred compensation plan account that matches the employee's contribution to the employee's deferred compensation plan account as permitted by the employer's personnel policy or collective bargaining agreement between the employer and the exclusive representative of the state employee. new text end new text begin (d) "Launch Account" means an account established under section 530A of the Internal Revenue Code. new text end new text begin (e) "Pilot program contribution" means a contribution made to a Launch Account under section 6434 of the Internal Revenue Code. new text end new text begin (f) "Program" means the Launch Account contribution program. new text end new text begin Subd. 3. new text end new text begin Statement of purpose. new text end new text begin (a) The purpose of the program is to provide a means for a state employee to voluntarily contribute a portion of the employee's compensation or direct the employer matching contribution to a Launch Account or Launch Accounts. new text end new text begin (b) The state creates and establishes the "Launch Account contribution program" for state employees to save for a child's financial future for the following reasons: new text end new text begin (1) encouraging long-term savings for the benefit of dependent children strengthens family financial security, supports the economic stability of the state, and complements existing employee retirement and deferred compensation programs; and new text end new text begin (2) permitting employees to allocate a portion of their compensation and employer matching contribution toward a Launch Account promotes financial literacy and intergenerational wealth without additional state expenditure. new text end new text begin Subd. 4. new text end new text begin Program establishment. new text end new text begin (a) No later than July 4, 2026, the commissioner must establish and maintain the program whereby a state employee may: new text end new text begin (1) voluntarily contribute a portion of the employee's compensation to a Launch Account; and new text end new text begin (2) direct any or all of the employer matching contribution that would have been contributed to the state employee's deferred compensation plan account to a Launch Account. new text end new text begin (b) The commissioner must adopt and amend a written plan document specifying the rules, terms, and conditions of the program. new text end new text begin (c) The program must be uniformly available to all state employees. new text end new text begin (d) The program must comply with the requirements of sections 128 and 530A of the Internal Revenue Code and the applicable Internal Revenue Service regulations. new text end new text begin Subd. 5. new text end new text begin Opening a Launch Account. new text end new text begin (a) Before contributions under the program can be made, a Launch Account must be opened. new text end new text begin (b) A Launch Account is opened by making an election on Internal Revenue Service Form 4547 or through an online tool or application on the Launch Account website. new text end new text begin (c) If an election to open an initial Launch Account is not being made at the same time as the election to receive a pilot program contribution, the individual authorized to open the initial Launch Account must be a legal guardian, parent, adult sibling, or grandparent of the child, in that order of priority. If multiple individuals have the same highest level of priority and no prior election has been made for the child, any individual with that level of priority may make the election. new text end new text begin (d) If an election to open the initial Launch Account is being made at the same time as an election to receive a pilot program contribution, the individual authorized to open the initial Launch Account is the individual who anticipates that the child will be the individual's qualifying child, as defined in section 152 of the Internal Revenue Code, for the tax year in which the election is made. new text end new text begin Subd. 6. new text end new text begin Contributions. new text end new text begin (a) The amount of an employer matching contribution that a state employee elects to redirect to a Launch Account must be provided in an agreement between the state employee and the employee's employer. The agreement must be in a format specified by the commissioner. new text end new text begin (b) The amount a state employee elects to contribute to a Launch Account as a payroll deduction must be provided in an agreement between the state employee and the employee's employer. The agreement must be in a format specified by the commissioner. new text end new text begin (c) The amount an employee contributes under paragraph (b) is voluntary and not considered employer contributions. new text end new text begin (d) A state employee may reduce the amount the state employee is contributing to the state employee's deferred compensation plan account to contribute to a Launch Account. new text end new text begin (e) Contributions must be credited to the Launch Account or Launch Accounts designated by the state employee. new text end new text begin (f) The amount contributed by a state employee or the employee's employer must not exceed the annual contribution limit as governed by section 530A(c)(2) of the Internal Revenue Code. new text end new text begin (g) The commissioner must allow for contributions to be made within the existing payroll systems. new text end new text begin Subd. 7. new text end new text begin Treatment of employer contributions. new text end new text begin (a) Contributions paid to a Launch Account pursuant to section 128 of the Internal Revenue Code are not includable in the state employee's income. new text end new text begin (b) The employer matching contribution that a state employee elects to direct to a Launch Account is not considered compensation for purposes of retirement annuity calculations under chapter 352. new text end new text begin Subd. 8. new text end new text begin Administration and reporting. new text end new text begin (a) The commissioner may adopt rules necessary to coordinate program implementation with the Department of Revenue and the Internal Revenue Service to ensure compliance with any contribution limits and reporting requirements. new text end new text begin (b) The commissioner must ensure that the program leverages existing payroll and deferred compensation plan systems, as applicable, to minimize administrative costs. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end