HRS §88E-12
How deferred pay counts for retirement and taxes
Money you put into a deferred compensation plan under this chapter counts as regular pay when figuring retirement, pension, or social security benefits. You can choose to include or exclude some or all of that deferred pay when calculating federal income tax withholding, allowing both traditional and Roth contributions under federal law.
employees
The statute, as written — Deferred amounts as compensation
Any compensation deferred pursuant to a plan established under this chapter shall be deemed regular compensation for the purpose of computing contributions or benefits under existing retirement, pension, or social security systems applicable to participating employees; provided that, at the participating employee's option, all or part of the deferred compensation may be included or excluded in the computation of federal income taxes withheld on behalf of the participating employee, allowing for both a traditional contribution and a Roth contribution under section 457(b) of the Internal Revenue Code, as amended. [L Sp 1981 1st, c 7, pt of §1; am L 2019, c 86, §2]
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