Important 403(b) Plan Updates - Effective January 1, 2026
IRS Employee Contribution Limits
The 403(b) retirement plan employee contribution limits will be increasing on 1/1/2026. The new 2026 IRS contribution limits are:
- Under age 50: $24,500
- Ages 50 (or turning 50 in 2026) until age 59: $32,500
- Ages 60 (or turning 60 in 2026) until age 63: $35,750
- Ages 64 (or turning 64 in 2026) and up: $32,500
To adjust your 403(b) contribution amount in Workday at any time throughout the year, go to Menu > Benefits and Pay > Change Retirement Savings (under Tasks and Reports).
As a reminder, to adjust your investment options or to change your retirement plan beneficiaries, please go to www.tiaa.org/fairfield or call TIAA at 800-842-2252.
Roth Catch-Up Contributions
Effective 1/1/2026, under the SECURE 2.0 Act, employees ages 50 and older who earned more than $150,000 in the previous calendar year (based on W-2 wages), will be required to have any catch-up contributions during the current calendar year deposited into the Roth (after-tax) portion of the 403(b) plan. This will happen automatically, and no changes are required in Workday. Employees ages 50 or older who earned less than or equal to $150,000 in the previous calendar year will continue to make catch-up contributions on a pre-tax basis.
Here are two examples:
Example 1 – Employee who earned less than or equal to $150,000 in 2025:
Katie earned $120,000 in 2025. Since her wages were less than the $150,000 threshold in 2025, her 2026 catch-up contributions will be pre-tax.
Example 2 – Employee who earned more than $150,000 in 2025:
Lucas earned $175,000 in 2025. Because his wages exceeded the $150,000 threshold in 2025, his catch-up contributions must go into the Roth (after-tax) portion of his 403(b) plan. Pre-tax catch-up contributions will no longer be allowed.
If you have any questions, please contact Blythe Josovitz at bjosovitz@fairfield.edu or x.2995.
For more information, contact Blythe Josovitz, Director, Benefits & Comp. / x.2995 / bjosovitz@fairfield.edu