An upcoming change in federal law will affect how some Washington State University employees contribute to their retirement plans.
Starting on Jan. 1, 2026, all catch-up contributions must be made as Roth contributions in accordance with the Secure 2.0 Act, section 603. This change only applies to employees age 50 and over who will make $145,000 or more in salary at the end of 2025.
Exact catch-up rates for 2026 have not yet been announced by the Internal Revenue Service.
Currently, employees who are 50 or older can contribute an additional $7,500 over the general voluntary contribution limit of $23,500. For employees who are 60–63 as of Dec. 31, 2026, the maximum catch-up contribution cap is higher for the Voluntary Investment Plan, currently set at $11,250.
This change applies to employees contributing to the 457b Deferred Compensation Plan through the Department of Retirement Systems or the 403b Voluntary Investment Plan through TIAA. Maximum contributions could be made to both of these plans, as they are covered by two different tax codes.
Participants in the WSU Retirement Plan who contribute at the 10% rate should know that the employee 2.5% contribution counts toward the $23,500 limit for the VIP; there is no impact to the DCP limit.
Human Resource Services has provided the following examples for how the federal changes could impact different employees:
2025 Earnings under $145,000
- If your 2025 earnings are under $145,000 you can contribute the following amounts:
- Regular Contribution: Up to $23,500, as pre-tax, Roth or a combination
- Catch up Contribution DCP: Up to $7,500 as pre-tax, Roth or a combination
- Catch up Contribution VIP: Up to $7,500 or $11,250, depending on age, can be pre-tax, Roth or a combination
2025 Earnings equal to or over $145,000
- If your 2025 earnings are equal to or over$145,000 you can contribute the following amounts:
- Regular Contribution: Up to $23,500, as pre-tax, Roth or a combination
- Catch up Contribution DCP: Up to $7,500, must be Rothcontributions
- Catch up Contribution VIP: Up $7,500 or $11,250, depending on age, must be Rothcontributions
Visit the Voluntary Retirement Plans website for information on the voluntary plans. Questions about voluntary retirement contribution plans and the upcoming changes be directed to HRS Benefits via email or by calling 509-335-4589.
