New Requirement for Age-Based Catch-Up Contributions
A key provision of the SECURE 2.0 Act* takes effect in 2026 that may impact how your Voluntary Retirement Plan contributions are designated.
Syracuse University’s Voluntary Retirement Plan allows employees who are age 50 or older to make age-based catch-up contributions each year — an important opportunity to boost retirement savings.
Beginning Jan. 1, 2026, if your Syracuse University 2025 Social Security wages (Form W-2, Box 3) exceed $150,000 (indexed for inflation), any Voluntary Retirement Plan contributions that are designated as age-based catch-up contributions will automatically be made as after-tax Roth 403(b) contributions.
If the requirement to have catch-up contributions designated as after-tax Roth applies to you, no action is required unless you prefer to make only tax-deferred contributions, in which case you can limit your 2026 salary deferral to the base 402(g) limit $24,500.
Roth 403(b) contributions are deducted from your paycheck and are made with after-tax dollars—you pay taxes on the money before it goes into your retirement account. These contributions grow tax-deferred, and qualified withdrawals (after five years and meeting Plan distribution requirements) are tax-free, including earnings.
No. If this change applies to you, any Voluntary Retirement Plan contributions that are designated as age-based catch-up contributions will automatically be made as after-tax Roth 403(b) contributions.
While both Roth IRAs and Roth 403(b) plans can help you build retirement savings, they are different account types with key distinctions. For example:
- Income limits: Roth 403(b) contributions have no income restrictions, while Roth IRAs phase out at higher income levels.
- Contribution limits: Employer-sponsored 403(b) plans have much higher annual contribution limits than Traditional or Roth IRAs.
If you have questions about the Roth contribution option, contact TIAA at 855.842.CUSE (2873) | TTY: 800.842.2755, weekdays, 8 a.m. – 10 p.m. (ET). You may also schedule an appointment to meet with a TIAA financial consultant on campus or virtually.
The 2025 and 2026 Syracuse University Voluntary Retirement Plan contribution limits are available online.
You can begin or adjust your contributions at any time by completing the Syracuse University Voluntary Retirement Plan 403(b) Salary Reduction Form [PDF] or, if already enrolled, through the MySlice portal.
Yes. If the requirement to have catch-up contributions designated as after-tax Roth applies to you, and you prefer to have your contributions be tax-deferred, you can limit your 2026 salary deferral to the base 402(g) limit $24,500. The University’s annual Open Enrollment period provides a convenient opportunity to update your contributions for the coming year.
Additionally, you may begin or adjust your Voluntary Retirement Plan contributions by using the Salary Reduction Form [PDF] at any time. Once enrolled, your Voluntary Retirement Plan contributions can also be adjusted at any time within the MySlice portal.
The requirement to have catch-up contributions designated as Roth is based on your prior year’s W-2, Box 3 wages, from your current employer.
For example, if you’re newly hired in 2026 and your projected salary exceeds $150,000, your catch-up contributions for 2026 will not be automatically designated as Roth. Instead, your actual 2026 W-2, Box 3 wages will determine whether the Roth designation applies to any catch-up contributions you elect to make in 2027.
Roth contributions may be beneficial if you:
- Want tax-free distributions in retirement. Qualifying Roth distributions are typically tax-free, because you already paid taxes on the contributions, and your earnings are not taxable.
- Earn too much to contribute to a Roth IRA. There are no income limits for Roth 403(b) contributions in employer-sponsored plans.
- Want to contribute more than the annual IRA limits allow. Pre-tax/Roth 403(b) contribution limits within employer-sponsored plans are higher than the IRS limits allowed in Traditional or Roth IRAs.
- Prefer a mix of pre-tax and after-tax contributions to hedge against uncertainty of future tax rates.
- Want to reduce Required Minimum Distributions (RMDs). Roth contributions and earnings are excluded from RMDs (started in 2024).
- Plan to leave tax-free assets to beneficiaries. Qualified withdrawals may be tax-free for beneficiaries (consult with a tax advisor for details).
No. The mandatory Roth provision does not apply to the University’s 457(b) Deferred Compensation Plan. Non-governmental 457(b) plans fall under a different provision of the tax code and do not allow for Roth contributions.
TIAA offers personalized advice and education to help you plan for retirement. Meet with a TIAA financial consultant on campus or virtually.
- Call: 855.842.CUSE (2873) | TTY: 800.842.2755
- Hours: Weekdays, 8 a.m. – 10 p.m. (ET)
- Online: tiaa.org/schedulenow
This service is available at no additional cost as part of your Syracuse University benefits.
*The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022 builds upon the original SECURE Act of 2019 and was enacted as part of the Consolidated Appropriations Act of 2023 to expand coverage, increase retirement savings, and simplify and clarify retirement plan rules.
Every effort has been made to ensure that the information contained within this website is accurate. However, the benefits are governed by legal documents (which, in certain circumstances, may include insurance contracts). If there is any difference between the information in this website and the official documents, the official documents will control. As is the case with all of Syracuse University’s employee benefit plans, the University reserves the right to modify or terminate these benefits at any time.