Starting Jan. 1, 2026, a new federal requirement will impact how certain employees make catch-up contributions to their retirement plans under the SECURE Act 2.0.
Specifically, individuals who are ages 50 and older during 2026 or have received FICA wages from Case Western Reserve University exceeding $145,000 in 2025 will be required to make catch-up contributions on an after-tax Roth basis. Pre-tax catch-up contributions will no longer be permitted for these employees; however, contributions up to the standard limit may still be made as pre-tax or Roth, based on an individual’s election.
Those who wish to avoid making Roth catch-up contributions must submit a new Salary Reduction Agreement to ensure total deferrals for 2026 do not exceed the standard annual limit.
Individuals with questions about how this change may affect a retirement or tax strategy in 2026—and beyond—are encouraged to consult with a financial advisor.
As Case Western Reserve University works with retirement plan service providers to implement these changes, personalized communications will be sent to potentially impacted employees well ahead of the Jan. 1, 2026 effective date.
Stay tuned for future updates from the Department of Human Resources’ Benefits Administration with guidance on how to determine eligibility and adjust retirement elections if needed.
