This article addresses the required Roth catch-up contributions for certain high earners, as well as Roth rollovers. For Part 1 of our Introduction to Roth, click here.
Required Roth Catch-Up Contributions for High Earners
Beginning January 1, 2026, federal law requires “high earning” individuals to make all catch-up contributions on a Roth after-tax basis rather than Traditional pre-tax. High earners are those whose FICA (Federal Insurance Contributions Act) wages from their employer exceeded $150,000 in 2025. To see if you meet the definition of a high earner, review the Social Security wages reported in Box 3 of Form W-2.
Note: If FICA wages do not apply to your compensation, you may continue making catch-up contributions on a Traditional pre-tax basis. Consult your accountant or tax advisor for more information.
| What Are Catch-Up Contributions?
If you are age 50 or older, you may make additional “catch-up” contributions beyond the standard annual limit. For participants ages 60–63, an even higher “super” catch-up limit applies. These extra contributions help boost retirement savings in your later working years. |
Next Steps
- Review Box 3 of your 2025 Form W-2 to confirm your FICA wages and determine if you may be affected.
- Consider your tax situation. Roth may be right for some participants, while tax-deferred may be preferable for others.
- Contact your payroll administrator if you’d like to begin making Roth contributions.
How JRB Supports Roth Contributions
To accommodate this change and provide flexibility, we introduced Roth contribution options to the JRB 403(b) Plan effective December 2025:
- You can choose Traditional pre-tax, Roth after-tax or a combination for regular contributions.
- Catch-up contributions can be directed appropriately based on your situation.
Alerus, our recordkeeper, tracks your contribution designations and ensures compliance. Your quarterly statements clearly separate Traditional pre-tax and Roth after-tax balances.
Roth Rollovers
To simplify your retirement planning, the JRB accepts rollovers from Roth accounts associated with other employer sponsored 403(b) or 401(k) retirement Plans. Rollovers from a Roth 403(b) Plan or Roth 401(k) Plan into your JRB Roth 403(b) must be made via a Direct Rollover. The JRB cannot accept funds that were first distributed to you directly.
Unfortunately, applicable law does not allow rollovers from Roth IRAs into your JRB Roth 403(b), as Roth IRAs are subject to different rules.
Conclusion
JRB participants can contribute to both Traditional pre-tax and Roth after-tax in the same calendar year, as long as combined contributions do not exceed federal maximum limits. Certain high earners must make catch-up contributions (including super catch-up) as Roth. The JRB accepts direct rollovers from other Roth 403(b) and Roth 401(k) accounts to help consolidate your retirement savings.
Call the JRB at (888) JRB-FREE (572-3733) for assistance with Roth contributions, catch-up elections, or rollovers.
This information is for general purposes only and does not constitute legal, tax, or investment advice.
December 2025