What is SECURE 2.0 Act Section 603?
The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act Section 603 mandates that beginning January 1, 2026 – if plan participants have prior calendar year W-2 reported Social Security wages (Form W-2 Box 3) of more than $145,000 (threshold indexed annually) from the University of Illinois System and are making age 50+ catch-up contributions to their University 403(b) or State 457 plan(s) – then those contributions must be designated as Roth (after-tax), not pre-tax.
Who does this affect?
This affects employees who are age 50 or older by the end of the calendar year and have prior calendar year W-2 reported Social Security wages (Form W-2 Box 3) of more than $145,000 (threshold indexed annually) from the University of Illinois System.
Who is not affected?
- SURS participants do not contribute to Social Security and are exempt from this requirement.
- Employees who are not contributing to the University 403(b) or State 457 plan(s).
How do I know if I'm making age 50+ catch-up contributions?
If you’re contributing more than the standard IRS limit of $__,___ in 2026 (indexed annually) to your University 403(b) or State 457 plan(s), then you are contributing toward the age 50+ catch-up limit. You may reach out to University Payroll & Benefits (UPB) via the Service Portal for assistance.
If I'm affected by SECURE 2.0 Act Section 603 and I meet the Standard IRS limit, will my contributions continue?
No, your contributions will automatically stop at the annual standard limit.
How do I establish age-based Roth catch-up contributions, if I wish to continue contributing?
Reach out to University Payroll & Benefits (UPB) via the Service Portal to establish Roth contributions.
Will this provision affect me next year?
This provision is reviewed annually based on your prior calendar year’s University of Illinois System W-2 reported Social Security wages (Form W-2 Box 3). You may or may not continue to be subject to this requirement. If you are affected next year, you will receive an email.
Will my contributions continue as Roth next year?
If you were contributing:
- Pre-tax before your Roth catch-up contributions began, then pre-tax contributions will begin the following calendar year.
- Roth before your Roth catch-up contributions began, then Roth contributions will begin the following calendar year.
We encourage you to reach out to University Payroll & Benefits (UPB) via the Service Portal for assistance.
Who do I contact if I have questions?
Reach out to University Payroll & Benefits (UPB) via the Service Portal for assistance.