SECURE 2.0 Act Roth Mandate Frequently-Asked Questions/Making Elections

Can I contribute up to $32,500 using just the SECURE 2.0 Act Roth contributions?

No. The new SECURE 2.0 Act Roth 403(b) SRA contribution and SECURE 2.0 Act Roth 457(b) contribution will deduct only a maximum of $8,000 each or up to $11,250 each if you are age 60-63.  

Can I contribute up to $32,500 (up to $35,750 if age 60-63) without adding the SECURE 2.0 Act Roth contributions?

No. Your 403(b) SRA* contributions (whether pre-tax or Roth) will be deducted only up to a maximum of $24,500. You need to add the SECURE 2.0 Act Roth 403(b) SRA contribution to defer up to an additional $8,000 under the age 50 catch-up to reach the total 403(b) limit of $32,500. The age Roth 50 catch-up is $11,250 if age 60-63 for a total limit of $35,750. The limit returns to $32,500 starting at age 64.

Maximum U-M 403(b) Contributions
Plan Feature 403(b) SRA SECURE 2.0 Act Roth
403(b) SRA Contribution		 Total
Contribution Limit $24,500* $8,000 $32,500
Contribution Limit: Age 60-63 $24,500* $11,250 $35,750
Pre-tax or Roth May be pre-tax or Roth   Roth   N/A

Figure 1: Maximum 403(b) Contributions

Likewise, your 457(b) contributions, whether pre-tax or Roth, will be deducted only up to a maximum of $24,500. You need to add the SECURE 2.0 Act Roth 457(b) contribution to defer up to an additional $8,000 under the age 50 catch-up to reach the total 457(b) limit of $32,500. The age Roth 50 catch-up is $11,250 if age 60-63 for a total limit of $35,750. The limit returns to $32,500 starting at age 64.

Maximum U-M 457(b) Contributions
Plan Feature 403(b) SRA SECURE 2.0 Act Roth
403(b) SRA Contribution		 Total
Contribution Limit $24,500* $8,000 $32,500
Contribution Limit: Age 60-63 $24,500* $11,250 $35,750
Pre-tax or Roth May be pre-tax or Roth Roth N/A

Figure 2: Maximum 457(b) Contributions

I already contribute to the Roth 403(b) SRA and/or Roth 457(b).  Why do I have to add the SECURE 2.0 Act Roth contributions?

The Roth 403(b) SRA and/or Roth 457(b) will deduct only a maximum of $24,500 starting in 2026. You have to add the SECURE 2.0 Act Roth contribution to defer up to the additional $8,000 available under the age 50 catch-up contribution for each plan (up to an additional $11,250 if age 60-63).  

Do I have to wait until I contribute $24,500 before I can add the SECURE 2.0 Act Roth contributions?

No. You may add the SECURE 2.0 Act Roth 403(b) SRA contribution and/or SECURE 2.0 Act Roth 457(b) contribution as early as Jan. 1, 2026. Keep in mind these contributions will deduct only up to $8,000 each (up to $11,250 if age 60-63), so you need to be enrolled in the non-SECURE 2.0 Act 403(b) SRA and/or 457(b) to defer up to the maximum allowable. 

If you wait until you contribute $24,500 to the 403(b) SRA and/or 457(b) before adding the SECURE 2.0 Act Roth contributions, there may not be enough paychecks left in the year to reach your target deferral total for the year. In addition, you lose the advantage of dollar-cost averaging because you are contributing over fewer paychecks during the year. This can subject the purchase price of your periodic investments to market volatility that can be lessened by contributing regularly over more months.  

Can I change the amount of SECURE 2.0 Act Roth contribution?

Yes. You have one opportunity per pay period to make a combined election for any and all retirement savings plans, including the SECURE 2.0 Act Roth 403(b) SRA contribution and SECURE 2.0 Act Roth 457(b) contribution.

Can I defer up to the entire annual SECURE 2.0 Act Roth contribution limit in only a few paychecks if I am going to retire or terminate (i.e. front-load the contribution)?

Yes.

How does the SECURE 2.0 Act Roth contribution reduce my take-home pay? Since the contribution is after-tax, how do I pay the taxes on it?

An after-tax Roth contribution reduces your take-home pay more than an equivalent pre-tax contribution. This is because the amount of the Roth contribution is included when calculating your federal and state taxes, which further reduces your take-home pay.  

What happens if I add the SECURE 2.0 Act Roth contribution but leave the university before making the maximum pre-tax contribution of $24,500 and the full SECURE 2.0 Act Roth contribution? Would this be a limit violation?

No. You are not required to contribute $24,500 pre-tax contribution for the year before you are allowed to make SECURE 2.0 Act Roth contributions. If you leave U-M before making the maximum allowable pre-tax contribution while making SECURE 2.0 Act Roth contributions, you have not violated any IRS limits. In this scenario, you have not maximized your potential deferrals in both pre-tax and Roth categories, but it does not exceed any limits. Keep in mind you still need to aggregate your U-M pre-tax and Roth contributions with those you make through another employer to ensure you do need to exceed the IRS limits. 

If I add the SECURE 2.0 Act Roth 403(b) SRA contribution and/or SECURE 2.0 Act Roth 457(b) contribution, does it open a new account at TIAA or Fidelity? Do I  need to select new investment funds?

No. If you already have a U-M 403(b) SRA and/or 457(b) account at TIAA and/or Fidelity and are just adding the Roth contribution, it does not open a new account. It is just an additional payroll deduction that is taken as after-tax Roth. It is deposited into your existing account, and you do not have to select new funds or beneficiaries.  

I have only had pre-tax contributions and never did Roth. If I add the Roth contributions, I will be paying taxes at the time the contribution is deducted from my paycheck. How is this tracked at TIAA and Fidelity so I do not pay taxes again when I cash out the money?

TIAA and Fidelity will track your pre-tax and Roth contributions separately in your account, so they are labeled with the appropriate tax treatment. Any amounts you cash out will have the correct tax classification applied so any Roth contributions are not taxed a second time upon distribution.

If I decide to take action, what do I do?

If you decide to take action, you must make new elections through Wolverine Access. 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.

*This also includes the 5% 403(b) contribution you make to the Basic Retirement Plan.

In what order are deductions taken from my paycheck? 

Benefit deductions are taken from your paycheck in the order below. It is your responsibility to ensure your paycheck includes enough funds for all of your selected deductions. 

  1. Medical Plan

  2. Legal Services Plan

  3. Dental Plan

  4. Vision Plan

  5. Life Insurance Plan

  6. Long-Term Disability Plan

  7. Basic Retirement Plan

  8. Dependent Care Flexible Spending Account 

  9. Health Care Flexible Spending Account

  10. Health Savings Account

  11. Fidelity Pre-tax SRA 

  12. TIAA Pre-tax Extra to Basic Plan

  13. TIAA Pre-tax SRA

  14. 457(b) Pre-tax

  15. Fidelity Roth 403(b) SRA

  16. SECURE Act Roth TIAA Extra to Basic Plan

  17. SECURE Act Roth 403(b) SRA

  18. TIAA Roth 403(b) SRA

  19. 457(b) Roth

  20. SECURE Act Roth 457(b)

For more detailed information, view the "Priority of Deductions Taken From Your Pay" section of the Contribution Limits web page.