Starting January 1, 2026, under the federal Secure 2.0 Act, Section 603, catch-up contributions will be required to be made as Roth (post-tax) contributions. 

Who is eligible to make catch-up contributions?  Individuals who are age 50 or older can contribute an additional $7,500 over the general voluntary contribution limit, which is currently $23,500.  Those who will be between the ages of 60-63 as of December 31, 2026, will be able to contribute $11,250 as their catch-up contribution instead of $7,500 for the VIP plan with TIAA only. The DCP plan’s catch-up limit is $7,500 for all employees age 50 and older.

These rates may be changing in 2026, but those have not been announced by the IRS yet.

Is this applicable to everyone over 50 who make catch-up contributions?  No, it is only those who make $145,000 or more in 2025. 

What retirement plans is this applicable to?  At WSU the voluntary plans this applies to are the 457b Deferred Compensation Plan (DCP) through Department of Retirement Systems (DRS) and the 403b Voluntary Investment Plan (VIP) through TIAA.  NOTE: Since these are under two different tax codes, maximum contributions could be made to both of these plans.  

WSURP participants please note: If you are contributing at the 10% level, the employee 2.50% contribution counts toward the $23,500 limit for the VIP plan. If you participate in the DCP your 2.50% contribution does not impact this limit.

Examples:

2025 Earnings under $145,000

If your 2025 earnings are under $145,000 you can contribute the following amounts:

Regular Contribution: Up to $23,500, as pre-tax, Roth or a combination

Catch up Contribution DCP: Up to $7,500 as pre-tax, Roth or a combination

Catch up Contribution VIP: Up to $7,500 or $11,250, depending on age, can be pre-tax, Roth or a combination

2025 Earnings equal to or over $145,000

If your 2025 earnings are equal to or over $145,000 you can contribute the following amounts:

Regular Contribution: Up to $23,500, as pre-tax, Roth or a combination

Catch up Contribution DCP: Up to $7,500, MUST be Roth contributions

Catch up Contribution VIP: Up $7,500 or $11,250, depending on age, MUST be Roth contributions

If over 50, and you will earn $145,000 or more in 2025, and you want to capitalize on pre-tax contributions, look at contributing to both of the voluntary retirement plans (DCP and VIP), keeping the contributions at the regular limit of $23,500 or less.  If you currently are only participating in one of these plans, you can participate in both and do the regular limit as pre-tax into both.  For Example:

Regular Contribution: $47,000 as pre-tax contributions, being $23,500 into the DCP and the VIP accounts

Catch up Contributions: $15,000 as Roth contributions, equating to $7,500 into the DCP and VIP contributions

Catch up Contributions for those 60-63: $18,750 as Roth contributions, equating to $11,250 into the VIP contributions and $7,500 into the DCP.

All contribution rates reflected in this email reflect what is currently in place.  These rates may be changing in 2026, but those changes have not been announced by the IRS yet.

Visit the Voluntary Retirement Plans website for information on the voluntary plans.  Questions can be directed to HRS Benefits at hrs.benefits@wsu.edu or 509-335-4521.

Content Credit: Ann Monroe, Director, HRS Benefits & Medical Leave and Accommodation; Melissa Young, HRS Sr. Human Resource Consultant, Retirement