Roth vs. SECURE Act Roth: What’s the Difference?

Roth 403(b) SRA and Roth 457(b)

U-M added the Roth 403(b) SRA and Roth 457(b) in 2013 to offer the tax advantages of a Roth. The maximum contribution for each plan is $24,500 for 2026. The age 50 catch-up allows a person to contribute up to an additional $8,000 or $32,500 total limit for each plan. Those aged 60-63 may contribute up to an additional $11,250 or $35,750 to each plan.  

Contributions to the Roth 403(b) SRA and the Roth 457(b) are capped at the general limit of $24,500 starting in 2026 for those subject to the SECURE 2.0 Act Roth mandate. If you are subject to the Roth mandate, you cannot reach the $32,500 limit with the Roth 403(b) SRA and Roth 457(b). You must add the SECURE 2.0 Act contributions to defer the additional $8,000 under the age 50 catch-up to reach the total limit of $32,500. Likewise, you need to add the SECURE 2.0 Act contributions to defer the additional $11,250 to reach the total limit of $35,750 if you are age 60-63.

SECURE Act Roth 403(b) SRA and SECURE Act Roth 457(b)

The SECURE Act Roth 403(b) SRA contribution and SECURE Act Roth 457(b) contribution were added Jan. 1, 2026. These are available only to faculty and staff who are subject to the SECURE 2.0 Act Roth mandate (age 50 or older and have more than $150,000 in Social Security FICA tax wages for the preceding year). SECURE Act 403(b) Roth contributions will deduct a maximum of $8,000 per year ($11,250 if aged 60-63). SECURE Act 457(b) Roth contributions will deduct a maximum of $8,000 per year ($11,250 if aged 60-63).

Roth is Not SECURE Act Roth

Contributions to the Roth 403(b) SRA do not automatically continue as SECURE Act Roth 403(b) SRA amounts once the $24,500* limit has been reached if you are subject to the SECURE 2.0 Act Roth mandate. You must elect the SECURE Act Roth 403(b) SRA to defer more than $24,500 in 403(b)* amounts. Likewise, contributions to the Roth 457(b) do not automatically continue as SECURE Act Roth 457(b) amounts once the $24,500 limit has been reached if you are subject to the SECURE 2.0 Act Roth mandate. You must elect the SECURE Act Roth 457(b) to defer more than $24,500 in 457(b) amounts.  

Roth 403(b) SRA and Roth 457(b)

If you are not subject to SECURE 2.0 Act Roth mandate

  • Younger than age 50 contribution limit: $24,500 for each ($49,000 combined)

  • Age 50 or older contribution limit: $32,500 for each ($65,000 combined)

  • Age 60-63 contribution limit: $35,750 for each ($71,500 combined)

  • Eligibility: faculty, staff and emeritus; temporary staff are eligible for Roth 403(b) SRA only and not the Roth 457(b).

  • The contribution continues into the following year if you have a continuous appointment.

  • If you contribute more than the $24,500 limit to the Roth 403(b) SRA* and/or Roth 457(b) then become subject to the SECURE Act Roth mandate in a subsequent year, contributions will be capped at $24,500 even though they are being made as Roth.  

    • Roth 403(b) SRA contributions and Roth 457(b) contributions do not automatically continue to be deducted as SECURE Act Roth 403(b) SRA contributions and SECURE Act Roth 457(b) contributions once you contribute $24,500 if you are subject to the SECURE 2.0 Act Roth mandate.  

    • You must affirmatively make an election to add the SECURE Act Roth 403(b) SRA* and/or SECURE Act Roth 457(b) to reach the $32,500 limit for each plan ($35,750 if age 60-63) if you are subject to the SECURE 2.0 Act Roth mandate.

Roth 403(b) SRA and Roth 457(b)

If you are subject to SECURE 2.0 Act Roth mandate

  • Younger than age 50 contribution limit: $24,500 for each ($49,000 combined)

  • Age 50 or older contribution limit: $24,500 for each ($49,000 combined)

  • Age 60-63 contribution limit: $24,500 for each ($49,000 combined)

  • Eligibility: faculty, staff and emeritus; temporary staff are eligible for Roth 403(b) SRA only and not the Roth 457(b).

  • The contribution continues into the following year if you have a continuous appointment.

  • Once you contribute the limit of $24,500 under each plan, it does not continue to be deducted as a SECURE Act Roth contribution.  

    • Your 403(b)* and 457(b) contributions will be capped at a maximum of $24,500 for each type of deferral, whether pre-tax or Roth.  

    • You must affirmatively make an election to add the SECURE Act Roth 403(b) SRA and/or SECURE Act Roth 457(b) as a separate deduction in order to reach the $32,500 limit ($35,750 if age 60-63).

SECURE Act Roth 403(b) SRA and SECURE Act Roth 457(b)

  • Younger than age 50 contribution limit: n/a

  • Age 50 or older contribution limit: $8,000 for each ($16,000 combined)

  • Age 60-63 contribution limit: $11,250 for each ($22,500 combined)

  • Eligibility: Only faculty and staff who are subject to the SEUCRE 2.0 Act Roth mandate

  • The contribution(s) continues into the following year if you have a continuous appointment and you continue to be subject to the SECURE 2.0 Act Roth mandate. The contribution(s) will be canceled if you are no longer subject to the Roth mandate.

Frequently Asked Questions

If I am not subject to the SECURE 2.0 Act Roth mandate, can I make SECURE Act Roth 403(b) SRA and/or SECURE Act Roth 457(b) contributions?
No.

If I am not subject to the Roth mandate, which contribution do I select to contribute up to the maximum of $32,500 ($35,750 if age 60-63) for the 403(b) SRA?
You would select the non-SECURE Act Roth 403(b) SRA* to contribute up to the maximum of $32,500 ($35,750 if age 60-63). Alternatively, you may also select the pre-tax 403(b) SRA* and pre-tax 457(b) to defer up to a maximum of $32,500 for each plan ($35,750 if age 60-63).  

If I am not subject to the Roth mandate, which contribution do I select to contribute up to the maximum of $32,500 ($35,750 if age 60-63) for the 457(b)?
You would select the non-SECURE Act Roth 457(b) to contribute up to the maximum of $32,500 ($35,750 if age 60-63). Alternatively, you may also select the pre-tax 457(b) to defer up to a maximum of $32,500 for each plan ($35,750 if age 60-63).  

If I am subject to the Roth mandate, which contribution do I select to contribute the maximum of $32,500 ($35,750 if age 60-63)?

  • First, select the non-SECURE Act Roth 403(b) SRA* and non-Secure Act Roth 457(b) to defer up to a maximum of $24,500 for each plan. You may also select the pre-tax 403(b) SRA* and pre-tax 457(b) to defer up to a maximum of $24,500 for each plan. 

  • Second, you must add the SECURE Act Roth 403(b) SRA and/or Secure Act Roth 457(b) to defer the additional $8,000 under the age 50 Roth catch-up in order to reach the total limit of $32,500. The Roth catch-up is $11,250 if you are age 60-63, for a total limit of $35,750.

If I am subject to the Roth mandate, can I make SECURE Act Roth 403(b) SRA contributions but not contribute to the non-SECURE Act 403(b) SRA (regardless of whether pre-tax or Roth)?Yes. However, you will have only a maximum of $8,000 deducted ($11,250 if aged 60-63) of SECURE Act Roth 403(b) SRA contributions. You must still contribute to the non-SECURE Act 403(b) SRA to defer $24,500 in order to reach the $32,500 limit when combined with the SECURE Act Roth 403(b) SRA contribution ($35,750 if aged 60-63).

If I am subject to the Roth mandate, can I make SECURE Act Roth 457(b) contributions but not contribute to the non-SECURE Act 457(b) (regardless of whether pre-tax or Roth)?
Yes. However, you will have only a maximum of $8,000 deducted ($11,250 if aged 60-63) of SECURE Act Roth 457(b) contributions. You must still contribute to the non-SECURE Act 457(b) to defer $24,500 in order to reach the $32,500 limit when combined with the SECURE Act 457(b) contribution ($35,750 if aged 60-63).

Do I have to wait until I contribute the maximum of $24,500 to the 403(b) SRA before I can add the SECURE Act Roth 403(b) SRA contribution?
No. You can add the SECURE Act Roth 403(b) SRA contribution at any time during the year.

Do I have to wait until I contribute the maximum $24,500 to the 457(b) before I can add the SECURE Act Roth 457(b) contribution?
No. You can add the SECURE Act Roth 457(b) contribution at any time during the year.

Do I have to contribute the maximum $8,000 ($11,250 if age 60-63) if I add the SECURE Act Roth contribution for the 403(b) SRA and/or 457(b)?
No. You can add any amount up to the $8,000 maximum under the age 50 Roth catch-up ($11,250 if 60-63).

* Note: The limit on 403(b) SRA contributions also includes the 5% 403(b) contribution to the Basic Retirement Plan.