SECURE 2.0 Retirement Changes
Beginning on Jan. 1, 2026, new federal requirements (SECURE 2.0) may impact your retirement planning.
What's changing?
Beginning on Jan. 1, 2026, if your FICA wages (W-2 form, box 3) were greater than $150,000 in the prior calendar year, catch-up contributions to your CMU retirement plan at age 50 and older are required to be designated as after-tax Roth contributions.
What you need to know:
- This change only affects employees who are age 50 and older by Dec. 31, 2026, with income above the threshold who make catch-up contributions.
- Catch-up contributions allow employees age 50 and older to contribute beyond the standard IRS annual limit for employee elective salary deferrals, which is $24,500 for 2026. The IRS catch-up contribution limits for 2026 are:
- $8,000 for participants ages 50–59
- $11,250 for participants ages 60 to 63
- $8,000 for participants ages 64 and older
- Roth contributions are made with after-tax dollars, meaning your take-home pay may be affected, but qualified withdrawals in retirement will be tax-free.
- Standard contributions under the annual $24,500 limit are not affected by this change.
|
Employee Age |
Annual Catch-up Contribution Limit |
Catch-Up Contribution Type for Prior Year Earnings Greater than $150,0001 |
Catch-Up Contribution Type for Prior Year Earnings Less Than or Equal to $150,0001 |
|
50–59 |
$8,000 |
Roth after-tax contributions |
Pretax and/or Roth after-tax contributions |
|
60–63 |
$11,250 |
||
|
64-older |
$8,000 |
1The $150,000 Roth catch-up wage threshold will be adjusted for inflation periodically. Earned wages are calculated based on prior year's Box 3 wages from the employer sponsoring the retirement plan for which you are making active contributions.
What action do you need to take?
- For those affected, all catch-up contributions will automatically be designated as Roth to your CMU retirement plan.
- If you have pre-tax contribution elections, there is nothing that you need to do, as all catch-up contributions will be designated as Roth.
- Action is only required if you want to stop your contributions, which can be done at any time.
- Election changes are made on the TIAA portal which can be accessed through Workday, or visit TIAA's website
Need more information?
- View TIAA's educational video to better understand Roth vs. traditional contributions.
- Register for TIAA's "Roth-After Tax" webinar on Jan. 22, 2026.
- For immediate questions about retirement planning, schedule a consultation with a TIAA financial consultant at tiaa.org/schedulenow or by calling 800-732-8353.
- For benefits-related questions, contact the HR Benefits team at hrhelp@andrew.cmu.edu or 412-268-2047.