Secure Act 2.0
Effective January 1, 2026
Section 603 of the Secure Act 2.0 of 2022 changes how catch-up contributions work for certain higher-earning employees:
- If an employee earned more than $150,000 in FICA wages from their employer in the 2025 calendar year, any catch-up contributions they make must be Roth (after-tax) contributions. Your FICA wages can be found in Box 3 of your Form W-2.
- If an employee earned $149,999 or less, they can still choose to make catch-up contributions on a pretax or Roth basis.
What is a catch-up contribution?
Catch-up contributions can help older individuals save more as they near retirement. Participants who are aged 50 and older can elect to contribute an additional amount to their TDA, known as a catch-up contribution.
There are three catch-up contribution options:
- Those age 50+ can contribute the IRS deemed amount each year.
- Individuals who are ages 60-63 are allowed a super catch-up amount.
- Employees who qualify may be eligible for a lifetime 15-year catch-up.*
*The 15-year lifetime catch-up provision is not guaranteed. Please contact hrs-benefits@uni.edu to see if you qualify.
How these updates may affect your plan
If you meet the wage requirement and are 50+ years old, the catch-up contribution amount will automatically be directed to a Roth TDA account, unless you are already contributing to a Roth.
Employees can change their TDA plan and election amounts at any time.