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SB2900 • 2026

MS Deferred Comp; allow Roth and other after-tax accounts, and comply with qualified domestic relations orders.

AN ACT TO AMEND SECTION 25-14-5, MISSISSIPPI CODE OF 1972, TO ALLOW THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND TRUST TO OFFER ROTH ACCOUNTS AND OTHER AFTER-TAX CONTRIBUTION VEHICLES; TO PROVIDE THAT A PARTICIPANT'S ROTH OR OTHER ALLOWABLE AFTER-TAX CONTRIBUTION INTO A DEFERRED COMPENSATION ACCOUNT SHALL BE TREATED BY THE EMPLOYER AS INCLUDABLE IN THE PARTICIPANT'S INCOME AT THE TIME THE PARTICIPANT WOULD HAVE RECEIVED THAT AMOUNT IN COMPENSATION IF THE PARTICIPANT HAD NOT MADE A DEFERRED ELECTION; TO PROVIDE THAT THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND TRUST SHALL COMPLY WITH ANY QUALIFIED DOMESTIC RELATIONS ORDER UNDER THE INTERNAL REVENUE CODE ESTABLISHING THE RIGHT OF AN ALTERNATE PAYEE TO ALL OR A PORTION OF A PARTICIPANT'S BENEFIT UNDER THE PLAN; TO AMEND SECTION 25-14-15, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.

Elections Labor Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Johnson
Last action
2026-02-03
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

The bill did not pass and was referred to committee where it died, so there is no further action or implementation details available.

Mississippi Deferred Compensation Plan Changes

This bill would allow the Mississippi Deferred Compensation Plan to offer Roth accounts and other after-tax contribution options, and it requires compliance with qualified domestic relations orders.

What This Bill Does

  • Allows the Mississippi Deferred Compensation Plan to include Roth accounts and other after-tax contributions.
  • Requires employers to treat a participant's Roth or other allowable after-tax contribution as income at the time the employee would have received that amount in compensation if they had not made a deferred election.
  • Ensures compliance with qualified domestic relations orders, allowing alternate payees to receive all or part of a participant’s benefit under certain conditions.

Who It Names or Affects

  • Employees participating in the Mississippi Deferred Compensation Plan
  • Employers who offer the plan

Terms To Know

Roth account
A type of retirement savings account where contributions are made with after-tax dollars and withdrawals, including earnings, are tax-free.
Qualified domestic relations order (QDRO)
A court order that divides a participant's benefit in an employee benefit plan according to state law.

Limits and Unknowns

  • The bill did not pass and was referred to committee where it died.
  • It is unclear how many employees will take advantage of the new Roth account option.
  • Details on specific procedures for handling QDROs are left to be determined by plan administrators.

Bill History

  1. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (S) Died In Committee

  2. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (S) Referred To Finance

Official Summary Text

MS Deferred Comp; allow Roth and other after-tax accounts, and comply with qualified domestic relations orders.

Current Bill Text

Read the full stored bill text 
S. B. No. 2900 *SS08/R58* ~ OFFICIAL ~ G1/2
26/SS08/R58
PAGE 1 (icj\kr)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 2900

AN ACT TO AMEND SECTION 25-14-5, MISSISSIPPI CODE OF 1972, TO 1
ALLOW THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND TRUST TO 2
OFFER ROTH ACCOUNTS AND OTHER AFTER-TAX CONTRIBUTION VEHICLES; TO 3
PROVIDE THAT A PARTICIPANT'S ROTH OR OTHER ALLOWABLE AFTER-TAX 4
CONTRIBUTION INTO A DEFERRED COMPENSATION ACCOUNT SHALL BE TREATED 5
BY THE EMPLOYER AS INCLUDABLE IN THE PARTICIPANT'S INCOME AT THE 6
TIME THE PARTICIPANT WOULD HAVE RECEIVED THAT AMOUNT IN 7
COMPENSATION IF THE PARTICIPANT HAD NOT MADE A DEFERRED ELECTION; 8
TO PROVIDE THAT THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND 9
TRUST SHALL COMPLY WITH ANY QUALIFIED DOMESTIC RELATIONS ORDER 10
UNDER THE INTERNAL REVENUE CODE ESTABLISHING THE RIGHT OF AN 11
ALTERNATE PAYEE TO ALL OR A PORTION OF A PARTICIPANT'S BENEFIT 12
UNDER THE PLAN; TO AMEND SECTION 25-14-15, MISSISSIPPI CODE OF 13
1972, TO CONFORM; AND FOR RELATED PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. Section 25-14-5, Mississippi Code of 1972, is 16
amended as follows: 17
25-14-5. (1) The State of Mississippi, or any state agency, 18
county, municipality or other political subdivision may, by 19
contract, agree with any employee to defer, in whole or in part, 20
any portion of that employee's income, and a county, municipality 21
or other political subdivision, except community and junior 22
college districts, may make contributions to the plan on behalf of 23
actively participating members on a uniform basis through an 24
S. B. No. 2900 *SS08/R58* ~ OFFICIAL ~
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employer contribution agreement as provided for in the Mississippi 25
Deferred Compensation Plan and Trust Plan Document if making the 26
contribution does not conflict with any other state law. Those 27
funds may subsequently be used to purchase a fixed or variable 28
life insurance or annuity contract authorized for purchase by the 29
Public Employees' Retirement System of Mississippi for the purpose 30
of protecting its obligation to the deferred compensation program 31
for the employee from any life underwriter duly licensed by this 32
state who represents an insurance company licensed to contract 33
fixed and variable annuities and fixed or variable life insurance 34
business in this state and authorized by the Public Employees' 35
Retirement System of Mississippi to offer their products in the 36
plan, or to purchase any investments authorized for purchase by 37
the Public Employees' Retirement System of Mississippi under 38
Section 25-11-121, or to invest those monies in a fund or funds 39
maintained by a corporate trustee, which fund or funds are used as 40
an investment media for retirement, pension or profit sharing 41
plans that are tax qualified for that purpose. However, in the 42
administration of this plan, the Public Employees' Retirement 43
System of Mississippi may adopt such regulations as are reasonable 44
and necessary to assure the orderly functioning of the plan, but 45
those regulations shall not unreasonably restrict all licensed 46
life underwriters and insurance companies described in this 47
section from concurrently participating in providing contracts 48
authorized under this section. 49
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(2) Anything in any other law to the contrary 50
notwithstanding, except as provided in subsections (3) and (4) of 51
this section, the deferred portion of the employee's compensation, 52
the plan and the monies in the plan created by this chapter are 53
exempt from any state, county or municipal ad valorem taxes, 54
income taxes, premium taxes, privilege taxes, property taxes, 55
sales and use taxes and any other taxes not so named, until the 56
deferred compensation is paid to the employee or beneficiary and 57
exempt from levy, garnishment, attachment or any other process 58
whatsoever. 59
(3) The Mississippi Deferred Compensation Plan and Trust, or 60
any other deferred compensation plan established by this chapter, 61
may include Roth accounts pursuant to 26 USC § 402A or any other 62
after-tax contribution vehicle allowed under the Internal Revenue 63
Code, if permitted by the plan document. A participant's Roth or 64
other allowable after-tax contribution into a deferred 65
compensation account shall be treated by the employer as 66
includable in the participant's income at the time the participant 67
would have received that amount in compensation if the participant 68
had not made a deferred election. 69
(4) The Mississippi Deferred Compensation Plan and Trust 70
shall comply with any judgment, decree or order establishing the 71
right of an alternate payee, as defined in 26 USC § 414(p)(8), to 72
all or a portion of a participant's benefit under the plan to the 73
extent that it is a qualified domestic relations order under 26 74
S. B. No. 2900 *SS08/R58* ~ OFFICIAL ~
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ST: MS Deferred Comp; allow Roth and other
after-tax accounts, and comply with qualified
domestic relations orders.
USC § 414(p). The administrator shall establish reasonable 75
written procedures to determine whether an order is a qualified 76
domestic relations order, and to administer the distribution of 77
benefits with respect to such an order, which procedures may be 78
amended from time to time. Notwithstanding any other provisions 79
in the plan, the plan may make an immediate distribution to the 80
alternate payee pursuant to a qualified domestic relations order. 81
SECTION 2. Section 25-14-15, Mississippi Code of 1972, is 82
amended as follows: 83
25-14-15. Notwithstanding any other provision of this 84
chapter or any other provision of law to the contrary, except as 85
provided in Section 25-14-5(3), any sum deferred under the 86
deferred compensation program shall not be included for the 87
purposes of computation of any taxes withheld on behalf of any 88
employee. 89
SECTION 3. This act shall take effect and be in force from 90
and after July 1, 2026. 91