Coming in 2026: Roth Catch-up Requirement
Starting January 1, 2026, a new rule under the SECURE 2.0 Act, will impact how certain employees can make catch up contributions to their retirement plans.
What’s Changing?
If you’re turning age 50 or older in 2026 and your total 2025 FICA wages (Box 3 on your 2025 form W-2) were over $145,000*, any catch-up contributions you make in 2026 must be made as after-tax Roth contributions. If your retirement plan does not offer a Roth option, you will not be able to make catch-up contributions.
What does this mean for you?
If your FICA wages were over $145,000* in 2025, catch-up contributions must be made as after-tax Roth contributions in 2026.
If your FICA wages were $145,000* or less, you can choose to make catch-up contributions as pre-tax or Roth, depending on your plan options.
Steps you can take now
For more information on How to Navigate the Secure 2.0 update, click here.
*Indexed Annually
What’s Changing?
If you’re turning age 50 or older in 2026 and your total 2025 FICA wages (Box 3 on your 2025 form W-2) were over $145,000*, any catch-up contributions you make in 2026 must be made as after-tax Roth contributions. If your retirement plan does not offer a Roth option, you will not be able to make catch-up contributions.
What does this mean for you?
If your FICA wages were over $145,000* in 2025, catch-up contributions must be made as after-tax Roth contributions in 2026.
If your FICA wages were $145,000* or less, you can choose to make catch-up contributions as pre-tax or Roth, depending on your plan options.
Steps you can take now
- Talk to your UT System Financial provider or tax advisor to understand how this change may affect your retirement strategy
- For a list of approved provider information, click here
- Review your current contributions and plan options with your provider.
- Login to UT Retirement Manager to view or update your contribution elections.
For more information on How to Navigate the Secure 2.0 update, click here.
*Indexed Annually