This article was updated on November 26 with the 2026 IRS Contribution Limits.
To help us learn more about SECURE 2.0 Act and its new Roth options and requirement for certain Catch-up contributions, we talked to Dan, our Retirement Plan expert. Read our Q and A and review available resources to help you determine whether the Roth Catch-up requirement applies to you, if a new Roth savings option might benefit you, and about an increased savings option for those turning 60-63 in 2026.
What is the SECURE 2.0 Act?
Dan: In December 2022, the Setting Every Community Up for Retirement Act of 2022 (SECURE 2.0 Act) was signed into law. The retirement legislation includes significant changes that could help strengthen the retirement system and improve Americans’ financial readiness for retirement. Among a few changes, a big one is the Roth Catch-up requirement for certain people.
What is the Roth requirement for Catch-up contributions?
Dan: Starting in 2026, employees turning age 50 or older who earned more than $150,000* in the previous year (2025) must make any age 50 Catch-up contributions as after-tax Roth savings.
* FICA wages found on your Form W-2 Box 3 wages
What are the retirement contribution requirements and options based on my age and income, according to SECURE 2.0 Act?
Dan: Here is a helpful chart to illustrate the new requirements and available options under SECURE 2.0 Act based on your income, age, and whether you make Catch-up contributions:
| If you: | Required Action | Available Options | Notes |
|---|---|---|---|
| Earn more than $150,000* AND will be age 64 or older* in 2026 | Any Catch-up contributions (up to $8,000*) MUST be after-tax Roth contributions | Make your regular contributions as either pre-tax or after-tax Roth | Catch-up contributions CANNOT be pre-tax |
| Earn more than $150,000* AND will be ages 60-63* in 2026 | Any Catch-up contributions (up to $11,250*) MUST be after-tax Roth contributions | Make your regular contributions as either pre-tax or after-tax Roth | Catch-up contributions CANNOT be pre-tax |
| Earn more than $150,000* AND will be ages 50-59* in 2026 | Any Catch-up contributions (up to $8,000*) MUST be after-tax Roth contributions | Make your regular contributions as either pre-tax or after-tax Roth | Catch-up contributions CANNOT be pre-tax |
| Earn more than $150,000* AND will be under age 50* in 2026 | No required action | Make your regular contributions as either pre-tax or after-tax Roth | |
| Earn LESS than $150,000* AND will be age 64 or older* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $8,000*) as either pre-tax or after-tax Roth | |
| Earn LESS than $150,000* AND will be ages 60-63* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $11,250*) as either pre-tax or after-tax Roth | |
| Earn LESS than $150,000* AND will be ages 50-59* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $8,000*) as either pre-tax or after-tax Roth | |
| Earn LESS than $150,000* AND will be under age 50* in 2026 | No required action | Make your regular contributions as either pre-tax or after-tax Roth |
Notes:
*Based on the IRS 2026 limits. Ages are based on the age you will be on December 31, 2026.
**Based on 2025 FICA “Social Security wages” from box 3 of the 2025 MSU W-2 Form.
***The current pre-tax contribution and the new after-tax Roth option will be subject to the 2026 IRS limits for both their regular employee contributions (currently $24,500) and the Age 50 Catch-up (currently $8,000).
What are the benefits of contributing to a Roth?
Dan: Unlike traditional pre-tax contributions to a 403(b) or 457(b) account, after-tax Roth contributions allow you to withdraw that money tax free once you retire. So, while you’re still paying taxes on your earnings now, you may enjoy a reduced tax obligation in the future.
Are there downsides to a Roth contribution?
Dan: A couple of considerations include the tax implications and timing requirements. First, Roth contributions are withheld after your taxes are deducted, meaning you will pay more in tax with each paycheck and receive less take home pay. Second, you must wait at least five years after your first after-tax Roth contribution and you must be at least 59 ½ years old to make a tax-free withdrawal.
I am not required to make after-tax contributions, but I’m interested in the opportunity. What do I do?
Dan: Beginning in January, you can log into the EBS Portal and make changes to your 403(b) Supplemental and/or 457(b) Deferred Compensation accounts to move your current pre-tax contributions to the new after-tax Roth option. The 403(b) Base account will remain available only for pre-tax contributions.
I’m turning 60-63 in 2026, and I heard about a new retirement savings option for Catch-up contributions. What’s that?
Dan: If you make Catch-up contributions and you’re turning 60-63 anytime in the calendar year, MSU now offers a new option that allows your Catch-up amount to be higher than the regular Age 50 Catch-up amount. Once you reach the standard contribution limit in your MSU 403(b) Supplemental and/or 457(b) Deferred Compensation accounts, you can save up to $11,250 instead of the regular $8,000 limit for Age 50 Catch-up.
Where do I find more information about SECURE 2.0 Act, Roth and MSU’s Retirement Plans?
Information about the MSU retirement plans is available on the HR webpage, Available Retirement Plans. You can also learn more on the After-Tax Roth and SECURE 2.0 Act HR webpage.
Resources: SECURE 2.0 Act and Roth options
Fidelity:
TIAA:
Not having the 403B Base Plan able to be Roth (post-tax contributions) seems like such a huge miss. Why is the Base Plan not able to be made a Roth option?
Hi Justin – thanks for your comment! Here is our response from retirement expert, Dan:
First, after reviewing the SECURE 2.0 Act requirements related to Age 50 Catch-ups, and since only our 403(b) Supplemental Retirement Program and 457(b) Deferred Compensation Plan accounts offer the ability for Age 50 Catch-ups, we decided to add the Roth contribution source for these two accounts. Second, the national average of participants in retirement plans that take advantage of after-tax Roth contributions is around 18%. Lastly, in working with our recordkeepers to add Roth contributions, we found that most of our university peers do not offer a Roth option to an account that is tied to employer matching contributions.
One thing that should be clarified: how do voluntary Roth contributions, which many of us make independently of our workplace accounts, interact with the listed contribution limits?
Specifically, I contribute the maximum to my Vanguard Roth IRA already. Does that affect the limits for Roth contributions to the suppmental 403(b) Roth accounts? [Mathias Steiner, MSU id steine13].
Hi Mathias! Thanks for your question. We have the following answer from our HR retirement experts:
We can only provide information on the IRS limits for the MSU retirement plans. You may want to seek the advice of a financial consultant, tax advisor or your retirement plan vendor to help with understanding how your IRA contributions are affected by 403(b) contributions, including after-tax Roth contributions.
If you’re able to contact Fidelity or TIAA, they can probably provide more clarification. You can find their contact details here: https://hr.msu.edu/benefits/retirement/retirement-vendors.html
We hope this helps!