The Teachers’ Retirement System is introducing a Roth option in addition to its Tax-Deferred Annuity Program starting in 2026. In-service TRS members can now log in to the secure section of the TRS website to fill out an application to open a Roth account, but you cannot start contributing to it until January 2026.

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.

If a TRS member already has a TDA account, the new Roth option does not affect their current TDA participation. But members will now have the choice of investing their savings in the Roth option, the traditional TDA option or some combination of the two; members are responsible for managing their combined contribution levels.

If you open a Roth account, be sure to designate beneficiaries for that account — either the same ones listed on your TDA account or new beneficiaries of your choosing.

For more information, go to the TRS website.

— Leigh Anderson