Supplemental Annuity Plan

Roth 403b Plan Information

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FAQs

General Information

{expander}What is SECURE 2.0 Act and what does it mean for Sarah Lawrence’s retirement plan options?

SECURE 2.0 Section 603 is a new IRS provision that requires employers to implement Roth (post-tax) accounts for existing 403b plans. Secure 2.0, requires that any elective age-based catch-up contributions made by “high-income earners” be made on a Roth (after-tax) basis.  Effective January 1, 2026, Sarah Lawrence has elected to implement a broadly accessible Roth 403b plan to allow all non-student employees to contribute to their retirement on both pre- and post-tax bases.  

{expander}What are the benefits of contributing to my retirement on a Roth (post-tax) basis?

  • Growth in your contributions is tax-free.
  • Withdrawals in retirement are tax-free, provided certain conditions are met.
  • Roth contributions are taxed up front, but qualified withdrawals are tax-free. This may reduce your taxable income in retirement — especially if tax rates rise.

{expander}What are the drawbacks of contributing to my retirement on a Roth (post-tax) basis?

  • Unlike, pre-tax 403b contributions, Roth contributions via payroll are not exempt from federal, state, or local income taxes at the time that the contribution is made. As a result, contributing on a Roth basis may impact individuals overall tax circumstances in a given year.
  • The contributions will be after-tax, which may result in slightly lower take-home pay (compared to pre-tax contributions).

{expander}Where can I find more information about contributing to my retirement on a pre- or post-tax basis?

  • Information is available on the TIAA website.
  • Employees should consult with their personal financial advisor or TIAA consultant to discuss individual circumstances when planning for retirement.

 

Age-Based Catch-Up Contributions & Roth Requirements

{expander}What are catch-up contributions?

Catch-up contributions are additional amounts you can contribute to your retirement plan once you reach age 50.

{expander}Who is affected by the change in income-based, catch-up contribution changes under Secure 2.0?

You are affected if:

  • You are age 50 or older, and
  • Your 2025 wages from your employer exceed $145,000 (Wages from Box 3 on your W2)
  • And you make catch-up contributions to a retirement plan.

{expander}I make less than $145,000. Am I affected by the Roth catch-up requirement?

No. If your W-2 Box 3 wages from 2025 were $145,000 or less, you have the option to make catch-up contributions on a pre-tax or post-tax Roth basis.

{expander}Does the Roth catch-up requirement impact my regular (non-catch-up) contributions?

No. This rule only applies to catch-up contributions. You can continue to make regular contributions as pre-tax or Roth.

{expander}Can I opt out of the Roth treatment for my catch-up contributions?

No. If you meet the income threshold, the law requires that any catch-up contributions be made on a Roth basis.

{expander}How do I know if I’m impacted?

Review FICA wages from your 2025 W2 Box 3.  If your wages are greater than $145,000 and you want to make catch-up contribution, you are impacted.  A guided flowchart is available to help you determine your options.  You may also consult with Human Resources for an estimation of your 2025 Box 3 reported wages.

{expander}What should I do now?

  • Check your prior-year W-2 income to estimate if you’ll be affected.
  • Talk to a TIAA financial advisor to discuss whether Roth contributions align with your retirement strategy.

 

Pre- or Post-Tax Retirement Contributions

What are my options?

Need help in determining if the Roth option is right for you?  Use this guided flowchart to determine your options for contributing to your retirement plan on a pre- or post-tax basis.