Retire Ready TN reports, beginning Jan. 1, 2026 the federal SECURE 2.0 Act requires employers to change how they administer age-based catch-up contributions to State of Tennessee’s voluntary retirement plans- 401(K), 457(b), 403(b) for certain high-income participants. Age catch-up contributions starting in 2026 must be Roth (post-tax).
2026 Contribution Limits
The Standard annual contribution (under age 50) is $24,500.
The age-catch-up contribution (age 50 and older) will increase to $8,000, which allows for a total annual contribution amount of $32,500.
*Who is Impacted?
Employees who will be 50 and older in 2026.
Employed with UT in 2025 and earned $150,000 or more in FICA wages (Box 3 on the W2) in 2025.
Eligible employees who plan to contribute age-based catch-up contributions (any amount above $24,500) in 2026.
Employees who will be 50 and older in 2026.
Employed with UT in 2025 and earned $150,000 or more in FICA wages (Box 3 on the W2) in 2025.
Eligible employees who plan to contribute age-based catch-up contributions (any amount above $24,500) in 2026.
Please reach out to Charlton Gutierrez directly if you have more questions about the upcoming changes via email at Charlton.Gutierrez@empower.com, or by contacting the UT Benefits office at 901-448-8547.
*The ULPS plan is not impacted by this update.