The Case Western Reserve University Department of Human Resources recently announced a new federal requirement under the SECURE Act, which now requires certain employees to make catch-up contributions on an after-tax Roth basis.
Pre-tax catch-up contributions will no longer be permitted and applies to employees who:
- Will be age 50 or older during calendar year 2026; and
- Had FICA wages from CWRU exceeding $150,000 (Social Security wages reported in Box 3 of the W2) in calendar year 2025.
If both conditions apply to you, any contributions made above the standard annual elective deferral limit in 2026 or $24,500 must be designated as Roth (after-tax). Contributions up to the standard limit may still be made as either pre-tax or Roth, based on your election.
No action is required unless you wish to avoid making Roth catch-up contributions. In that case, you must submit a new "Salary Reduction Agreement form" to ensure total deferrals do not exceed the standard annual limit of $24,500 for 2026.
For questions about how this change may affect your retirement or tax strategy in 2026 and beyond, individuals are encouraged to consult with a financial advisor.
