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Secure Your Future

TRS’ new Roth option

New York Teacher
Tax form

The Teachers’ Retirement System (TRS) will introduce a Roth option in addition to its Tax-Deferred Annuity (TDA) program beginning in 2026. Enrollment begins Nov. 17. Read more »

Unlike a TDA account, which allows you to defer taxes by reducing your taxable income now but requires you to pay taxes when you withdraw funds, a Roth option offers no upfront tax break. Instead, withdrawals in retirement are generally tax-free. See a comparison chart »

TRS members may participate in both the Roth option and the TDA program simultaneously, but they are responsible for managing their combined contribution levels.

Enrollment timeline

As of Monday, Nov. 17, you can log in to the secure section of the TRS website to open a Roth account. Contributions cannot begin until January 2026.

Investments

Roth contributions may be invested in TRS’ Passport Funds, the same investment choices that the TDA program offers. You may select an investment mix for Roth contributions that is different from that of your TDA account.

Contributions

  • You choose the percentage of salary to be deducted from each paycheck into your new Roth account.
  • If you are contributing to a TDA now, your contributions will continue into 2026 at the same rate unless you make changes. You will need to manage the two contribution rates to ensure you have sufficient take-home pay.
  • The IRS annual contribution limit applies to the combined total of traditional and Roth contributions. This means that your contributions to both accounts combined cannot exceed that amount.

TRS will have detailed materials on its website about its new Roth option.

You are responsible for deciding — on your own or with the help of a financial adviser — whether to participate in one or both programs. TRS cannot provide financial advice.

You may not transfer funds between your TDA and Roth accounts.

Retirees are not eligible to participate in the Roth option, just as they cannot contribute to a TDA.

This column is compiled by Tom Brown, Victoria Lee and Christina McGrath, teacher-members of the New York City Teachers’ Retirement Board.