If You Contribute Only Pre-tax

If you contribute only pre-tax to the 403(b) SRA and/or 457(b), deductions will be capped at the IRS limit of $24,500* for each plan due to the SECURE 2.0 Act. You must elect the Secure 2.0 Act Roth contribution to add to your existing pre-tax 403(b) SRA and/or pre-tax 457(b) to defer more than $24,500* to these plans. 

Previously, pre-tax contributions for the 403(b) SRA and 457(b) allowed faculty and staff to defer up to the IRS maximum using a single payroll deduction for each plan. These pre-tax contributions are not enough to defer more than $24,500 to the 403(b) SRA and/or the 457(b) anymore.

Pre-tax Does Not Continue as Secure 2.0 Act Roth

Your pre-tax contributions to the 403(b) SRA will not automatically convert to the new Secure Act Roth 403(b) SRA contribution once the $24,500 limit is reached.

  • To defer more than $24,500* in 403(b) amounts, you must separately elect the SECURE Act Roth 403(b) SRA to add to your existing pre-tax 403(b) SRA contribution.
  • You will now need two contributions for the 403(b) SRA to defer more than $24,500*. 
    • One will be your pre-tax 403(b) SRA; the other will be the new Secure Act Roth 403(b) SRA. 

Your pre-tax contributions to the 457(b) will not automatically convert to the new Secure Act Roth 457(b) contribution after reaching the $24,500 limit.

  • To defer more than $24,500 in 457(b) amounts, you must separately elect the Secure Act Roth 457(b) to add to your existing pre-tax 457(b) contribution.
  • You will now need two contributions for the 457(b) to defer more than $24,500. 
    • One will be your pre-tax 457(b); the other will be the new Secure Act Roth 457(b).
Secure Act Roth Contribution vs. Non-Secure Act Roth Contribution
Type of Contribution Maximum for Each Plan

Pre-tax contribution to the 403(b) SRA and/or 457(b)

$24,500*

To defer more than $24,500, you need to enroll in the following:

  • SECURE 2.0 Act Roth 403(b) SRA contribution
  • SECURE 2.0 Act Roth 457(b) contribution

$8,000 ($11,250 if age 60-63)

Total

$32,500 ($35,750 if age 60-63)

*The $24,500 maximum on 403(b) amounts includes your 5% 403(b) contribution to the Basic Retirement Plan.

How to Add the SECURE Act Roth Contribution

  • Follow the step-by-step guidance in the 2026 SECURE Act "how-to" presentation. To hear the audio, hover your cursor over the gray speaker graphic at the lower righthand side of the screen, then click on the black arrow just below and to the left of the speaker graphic. 
  • To add the Secure 2.0 Act Roth contribution, be sure to select the "Secure Act SRA" and/or "Secure Act 457(b)" enrollment tiles in Wolverine Access.
  • View your Secure Act contribution calculator in Wolverine Access to determine how much you may defer per-paycheck using the new Secure Act Roth contributions.

Summary

You must add the new Secure Act Roth contribution to your existing pre-tax contributions you make to the 403(b) SRA and/or the 457(b) to defer more than $24,500 to each plan. This is because the pre-tax contributions by themselves are no longer enough to defer more than $24,500 to the 403(b) SRA and/or the 457(b) anymore under the SECURE 2.0 Act.