Catching Up on TIAA Contributions Later in Your Career

Why This Matters More at This Stage of a Career

Later-career faculty are often in their peak earning years, with fewer years remaining to build retirement savings than earlier in their career. Catch-up contribution rules exist precisely for this situation, allowing meaningfully higher contributions than the standard limit, but the rules are more layered than most people realize, and one of them changed for the 2026 tax year specifically.

The Standard Age 50 Catch-Up

For 2026, the base employee elective deferral limit for a 403(b) is $24,500. Participants who are age 50 or older by the end of the calendar year, and who are not in the 60-63 enhanced window described below, can contribute an additional $8,000 in catch-up contributions, bringing the total to $32,500. These figures are set by the IRS and adjusted annually for inflation, so the specific dollar amounts will change in future years even though the underlying structure described here stays consistent.

The Enhanced Catch-Up for Ages 60 Through 63

Under a provision from the SECURE 2.0 Act, participants who turn 60, 61, 62, or 63 during the year are eligible for a higher catch-up amount instead of the standard one, $11,250 for 2026, bringing the total possible contribution to $35,750. This enhanced amount applies only during this specific four-year window. Once you turn 64, the catch-up reverts to the standard age-50 amount.

The 15-Year Service Catch-Up, a 403(b)-Specific Feature

Beyond the age-based catch-ups, 403(b) plans (unlike 401(k) plans) can offer an additional catch-up for employees with at least 15 years of service at the same qualifying employer, such as a university. This can add up to an additional $3,000 per year, subject to a $15,000 lifetime cap. Where both the 15-year catch-up and the age-50 catch-up apply in the same year, the 15-year catch-up is applied first, with the age-50 catch-up covering any remaining amount. This is a genuinely underused feature, since many long-tenured faculty are eligible without realizing it.

The New Rule for 2026: Mandatory Roth Catch-Up for Higher Earners

This is the detail most likely to catch experienced faculty off guard. Beginning in 2026, under the SECURE 2.0 Act, anyone age 50 or older whose wages from their employer exceeded $150,000 in the prior calendar year must make their age-based catch-up contributions on a Roth, after-tax basis, rather than pre-tax. This applies whether or not you've historically contributed on a pre-tax basis, and it takes effect automatically under a deemed election if you don't specify otherwise. For many senior faculty and physician-scientists, this income threshold is easy to cross, which makes this a rule worth checking directly rather than assuming your prior election still applies unchanged. If your plan doesn't currently offer a Roth option at all, participants above this wage threshold will not be able to make catch-up contributions until the plan adds one.

What This Means for Your Take-Home Pay and Tax Planning

Because Roth contributions are made after tax, a catch-up amount that used to reduce your taxable income will no longer do so if you're subject to this new rule. This can affect take-home pay and warrants a broader look at your tax planning for the year, not just a mechanical adjustment to your contribution election.

Frequently Asked Questions

Can I use both the age-50 catch-up and the 15-year service catch-up in the same year?

Yes, if your plan offers both and you qualify for each. The 15-year catch-up is applied first, with the age-50 catch-up covering any additional amount up to your eligible total.

How do I know if the new Roth catch-up rule applies to me?

It applies if you were age 50 or older during the year and your wages from that specific employer exceeded $150,000 in the prior calendar year. This is based on wages from that employer specifically, not your total household income.

What happens if I don't make an election under the new Roth rule?

If you're subject to the rule and don't proactively elect otherwise, your catch-up contributions are deemed to be Roth automatically under the new requirement. It's worth reviewing your election rather than assuming your prior pre-tax choice still applies.

Does the enhanced catch-up for ages 60 to 63 replace the standard catch-up, or add to it?

It replaces the standard age-50 catch-up amount during those four years specifically, rather than stacking on top of it. Once you turn 64, you revert to the standard catch-up amount.