On September 15, 2025, the U.S. Department of the Treasury and the IRS issued final regulations under SECURE Act 2.0, Section 603 provisions related to 401(k), 403(b), and 457(b) catch-up contributions for certain higher-income participants.
Beginning January 1, 2026, participants age 50 or older who earned $150,000 or more in FICA wages in 2025 (as reported in Box 3 of the W-2) and who contribute catch-up amounts to the UNC 403(b) or UNC 457(b) plans will be required to make those catch-up contributions on a Roth after-tax basis.
Roth catch-up contributions are taxed when contributed, but qualified withdrawals—including eligible earnings—are tax-free if IRS requirements are met.
For full details about the changes for the SECURE Act 2.0 Section 603 Provisions, see the UNC Secure 2.0 Provision 603 Roth Notice.