All pre-tax as well as 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 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, which allowed faculty and staff to defer up to the IRS maximum using a single 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.
Pre-tax and Roth Do Not Continue as Secure Act Roth
- Your pre-tax and 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 and pre-tax contributions.
- You will 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.
- These will be in addition to any pre-tax contribution you also make to the 403(b) SRA.
Similarly, pre-tax and Roth contributions to the 457(b) do 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) and pre-tax contributions.
- Two Roth contributions for the 457(b) will now be needed 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).
- These will be in addition to any pre-tax contribution you also make to the 457(b).
| Type of Contribution | Maximum for Each Plan |
|---|---|
|
$24,500* |
|
To defer more than $24,500 you need to enroll in the following:
|
$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 right-hand 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 enrollment tiles in Wolverine Access labeled “SECURE Act SRA” and/or “Secure Act 457”.
- 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.
Pre-tax vs. Roth Contributions Will Be Proportional
If you contribute to the 403(b) SRA and/or 457(b) as both pre-tax and Roth, deductions will be taken up to the IRS limit of $24,500* under each plan on a proportional basis relative to your payroll deductions. Adding the SECURE Act Roth contribution will mean even more of your deferral totals will be Roth.
The following is an example of a person deferring the maximum to the 457(b), with 50% of the contributions being made as pre-tax and the other 50% being made as Roth. The SECURE 2.0 Act now requires up to $8,000 in deferrals that previously could be made as pre-tax; they must now be made as Roth. The results shift more contributions to Roth.
| Example: 457(b) | 2025: Before Secure 2.0 Act | 2026: Secure 2.0 Act |
|---|---|---|
| Contribution Limit | $31,000 (pre-tax and Roth) | $24,500 (pre-tax and Roth) $8,000 Secure 2.0 Act (must be Roth) |
| Contribution Allocation | 50% pre-tax and 50% Roth | 50% pre-tax and 50% Roth |
| Pre-tax contributions | $15,500 | $12,250 |
| Roth contributions | $15,000 | $12,250 |
| Secure 2.0 Act Roth contributions | n/a | $8,000 |
Summary
You must add the new Secure Act Roth contribution to your existing pre-tax and 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 pre-tax and 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 457(b) anymore.