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 $145,000* 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 $145,000** AND will be age 64 or older* in 2026 | Any Catch-up contributions (up to $7,500***) 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 $145,000** AND will be ages 60-63* in 2026 | Any Catch-up contributions (up to $11,250***, 150% of the standard Catch-up amount) 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 $145,000** AND will be ages 50-59* in 2026 | Any Catch-up contributions (up to $7,500***) 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 $145,000** 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 $145,000** AND will be age 64 or older* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $7,500***) as either pre-tax or after-tax Roth | |
| Earn LESS than $145,000** AND will be ages 60-63* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $11,250***, 150% of the standard Catch-up amount) as either pre-tax or after-tax Roth | |
| Earn LESS than $145,000** AND will be ages 50-59* in 2026 | No required action | Make your regular contributions and your Catch-up contributions (up to $7,500***) as either pre-tax or after-tax Roth | |
| Earn LESS than $145,000** 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 2025 limits, we are awaiting the IRS to announce the 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 $23,500) and the Age 50 Catch-up (currently $7,500).
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 will begin offering a new option that allows your Catch-up amount to be 150% of the regular Age 50 Catch-up amount.
Once you reach the regular employee contribution limit in your MSU 403(b) Supplemental and/or 457(b) Deferred Compensation accounts, you can add even more to your Catch-up contributions. Based on 2025 IRS limits, you could save $11,250 instead of the regular $7,500 limit for Age 50 Catch-up. The 2026 IRS limits will be announced soon.
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.
Details about switching to after-tax Roth contributions in the MSU retirement plans will be available in January.
Resources: SECURE 2.0 Act and Roth options
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