Summary
The
SECURE 2.0 Act placed restrictions on catch-up contributions for
high-earning participants. Beginning in 2026, participants who earned
more than $150,000
in the previous calendar year will be
required to make catch-up contributions as Roth after-tax contributions.
This Fast Fact utilizes
data from the 2023 Public Retirement
Research Lab (PRRL) Database to evaluate the effect of this provision on
public-sector retirement plan participants
by analyzing the percentage of
participants making catch-up contributions, the proportion of those who
are high earners, and the percentage of plans
that will need to have a Roth
contribution feature to allow these participants to continue to make
catch-up contributions. The analysis includes over
900,000 participants with available age
and salary information who made contributions in 2023, representing 208
different plans.