Beginning 1/1/2026 under Secure Act 2.0, new IRS rules will impact all HCPSS 403(b) plans. All 403(b) plans will be required to offer a post-tax Roth account. Additionally, there are changes to the catch-up provision for employees age 50 and older.
The new catch-up provision will be as follows:
- Individuals ages 50-59 can contribute an additional $7,500 annually in catch-up
- Individuals ages 60-63 can contribute an additional $11,250 annually in catch-up
- Individuals ages 64+ can contribute an additional $7,500 annually in catch-up
Individuals earning $145,000 or more must make any elected catch-up contributions to their Roth (post-tax) account.
More information will be provided in upcoming weeks and during Open Enrollment. Workday will be configured to ensure that employees do not exceed their maximum allowable contributions.
The Benefits Office will implement a blackout period for changes to 403(b) contributions during the month of December 2025 to ensure Secure 2.0 limits are accurately reflected for 2026.