Roth contributions to the 403(b) SRA and 457(b) will be limited to $24,500* to each plan due to the SECURE 2.0 Act. Even if you already contribute only as Roth to the 403(b) SRA and/or 457(b), you still need to elect the new Secure 2.0 Act Roth contribution to add to your existing Roth contributions to defer more than $24,500* to these plans.
U-M has offered Roth contributions for the 403(b) SRA and 457(b) for several years. This allowed faculty and staff to defer up to the IRS maximum (example: $31,000 for 2025) using a single payroll deduction for each plan. These are not the new Secure Act Roth contributions, and they are not enough to defer more than $24,500 to the 403(b) SRA and/or 457(b) by themselves anymore.
Roth Does Not Continue as Secure Act Roth
- Your Roth contributions to the 403(b) SRA will not automatically continue as 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 Roth 403(b) SRA contribution.
- You will now need two Roth contributions for the 403(b) SRA to defer more than $24,500*.
- One will be the Roth 403(b) SRA contribution U-M has offered for several years; the other will be the new Secure Act Roth 403(b) SRA.
Your Roth contributions to the 457(b) will not automatically continue as 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 Roth 457(b) contribution.
- You will now need two Roth contributions for the 457(b) to defer more than $24,500.
- One will be the Roth 457(b) contribution U-M has offered for several years; the other will be the new Secure Act Roth 457(b).
| Type of Contribution | Maximum for Each Plan |
|---|---|
|
$24,500* |
|
To defer more than $24,500, you must enroll in the following:
|
$8,000 ($11,250 if age 60-63) |
|
Total |
$32,500 ($35,750 if age 60-63) |
*The $24,500 cap 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" 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 Roth contributions you make to the 403(b) SRA and/or 457(b) to defer more than $24,500* to each plan. This is because the Roth contributions U-M has offered for several years by themselves are no longer enough to defer more than $24,500* to the 403(b) SRA and/or the 457(b) anymore.