Retirement Readiness Q1 2026:
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Important changes to retirement catch-up contributions
The IRS set the 2026 standard retirement account contribution limit at $24,500.
Beginning in 2026, an important change will affect how agebased catch-up contributions are made to retirement plans for certain employees. This change, known as Section 603 of the SECURE 2.0 Act, requires that higher-income employees make catch-up contributions as Roth (after-tax) contributions rather than traditional pretax contributions.
What's changing?
Starting January 1, 2026, employees who want to make catchup contributions and whose wages were more than $150,000 in 2025* from the employer sponsoring the plan will be required to make catch-up contributions as Roth after-tax.
What you need to know
- Catch-up contributions allow employees age 50 and older to contribute beyond the standard IRS annual limit.
- This change only affects employees age 50+ who make catchup contributions and whose prior year wages are above the threshold.
- Roth contributions are made with after-tax dollars, meaning your take-home pay may be lower, but qualified withdrawals in retirement will be federal tax-free.**
- For all employees, regardless of age or wages, standard contributions up to the annual limit can be pre-tax, Roth after-tax, or a combination of both.
2026 IRS contribution limits
Below are the total contribution amounts employees can make to an employer-sponsored retirement account in 2026 (not including the 15 years of service catch-up contribution discussed below, which permits up to $3,000 in additional annual contributions).
| Age in 2026 | IRS contribution limit |
|---|---|
| under 50 | $24,500 |
| 50–59 | $32,500 |
| 60–63 | $35,750 |
| 64 and over | $32,500 |
Why save more?
Maintaining your current lifestyle is one of the most important factors when it comes to an ideal retirement. That’s why every paycheck you don’t save as much as you can for retirement is a missed opportunity to create the income you’ll need in the future. The more you're able to save and maximize your annual contribution limit, the more your money has the potential to grow through the power of compounding interest. That growth can help offset increases in the cost of living. Your money is your money-maker, so give it as much time to grow as possible.
Need more information?
- For a better understanding of Roth versus pre-tax contributions, visit tiaa.org/rothsavings and voya.com/page/on-demand/roth-vs-traditional-retirement-savings-plans
- View live and on-demand webinars to learn more about these changes: - tiaa.org/roth-webinars
- For questions about retirement planning, schedule a meeting with a financial consultant at no additional cost:
TIAA: Visit tiaa.org/schedulenow or call 800-732-8353.
Voya: Visit kbor.beready2retire.com/contactinformation/contact-us or call 800-814-1643.
- For benefits-related questions, contact your HR Benefits team.
To enroll or increase your contributions
You must complete the investment agreement available through your HR/Benefits office:
- To enroll with TIAA, go to tiaa.org/kbor
- To enroll with Voya, go to kbor.beready2retire.com
Your financial wellness matters
We understand that every participant's journey is unique and having the right financial education is key to help build the financial future you deserve. Be sure to check out these resources to find practical tips, expert insights, and real-world strategies for wherever you are in your life.
TIAA: Visit tiaa.org/financialessentials
Voya: Visit voya.com/voyalearn
Are you eligible for the 403(b) 15 years of service catch-up provision this year?
The 15 years of service catch-up may apply to employees participating in a 403(b) tax deferred annuity who have had at least 15 years of service with an educational organization or certain types of healthcare and church entities. Under IRS rules, a participant who is eligible for both the 15 years of service catch-up and an age-based catch-up in the same year first must contribute the maximum available that year under the 15 years of service before contributing under the age-based catch-up contribution.
The 15 years of service catch-up is not affected by Section 603 of the SECURE 2.0 Act, meaning that an eligible participant may make their 15 years of special catch-up contributions on a pre-tax or Roth after-tax basis.
To find out if you are eligible for the 15 years of service catch-up, contact your University’s Benefits Office.
*Wages are defined as W2-Box 3, Social Security wages.
**Withdrawals of earnings prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply. Earnings can be distributed tax free if distribution is no earlier than five years after contributions were first made and you meet at least one of the following conditions: age 59½ or older or permanently disabled. Beneficiaries may receive a distribution in the event of your death.
The TIAA group of companies does not provide legal or tax advice. Please consult your legal or tax advisor. This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation.
This material does not consider an individual’s own objectives or circumstances, which should be the basis of any investment decision.
TIAA and Voya, or any of their affiliates or subsidiaries are not affiliated with or in any way related to each other. TIAA acts as a recordkeeper for the plan and, in that capacity, is not a fiduciary to the plan. TIAA is not responsible for the advice and education provided by Voya. TIAA may also provide advice and education to plan participants. When TIAA provides advice on how to allocate investments, it takes fiduciary responsibility for that advice. Voya is not responsible for the advice and education provided by TIAA.
Insurance products, annuities, and retirement plan funding issued by (third-party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company (“VRIAC”), Windsor, CT. VRIAC is solely responsible for its own financial condition and contractual obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services LLC (“VIPS”). VIPS does not engage in the sale or solicitation of securities. All companies are members of the Voya® family of companies. Securities distributed by Voya Financial Partners LLC (Member SIPC) or third parties with which it has a selling agreement. Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. All products and services may not be available in all states.
Investment, insurance, and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
Investment products may be subject to market and other risk factors. See the applicable product literature or visit tiaa.org for details.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
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