How do I know my annual contribution limit for TDA and Roth contributions?

You can find your contribution limit in the secure section of TRS’ website. After logging in, use the Menu to choose TDA or Roth; then, look for the links to change your contribution rate or enroll. Your contribution limits will displayed on those pages. Remember that the same contribution limit applies jointly to TDA contributions and Roth contributions.

Your pay statement should also indicate your contribution limits.

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What is the new IRS rule about 403(b) contributions for people making more than $150,000?

The IRS rule applies to members who are aged 50 and older, AND whose 2025 Social Security Wages (Box 3 on the W-2 from the City) exceeded $150,000.

For these members, any age-based catch-up contributions must be taken from after-tax funds and invested in a Roth account. If you are affected, this means you’ll need to open a Roth account with TRS if you want to contribute the maximum amount in 2026.  

TRS contacted affected members by email in February. The $150,000 threshold for 2026 is indexed for inflation and subject to change in future years.

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If I am affected by the $150,000 rule, how can I max out my contributions for the year?

In all cases, if you want to make Roth (after-tax) contributions, you must first open a Roth account in the secure section of our website. Roth enrollment is not automatic.

Here are two examples of how to max out your contributions for the year:

1. Under a sequential contribution method, you can contribute first to your TDA account. When you reach the $24,500 limit, those contributions will stop for the rest of 2026. You can then enroll in the Roth account to make catch-up contributions. When you reach the limit ($8,000 or $11,250 depending on your age), your Roth contributions will then stop for the rest of 2026. Note: When deciding when to start your Roth contributions, remember that it takes at least 30 days after you enroll before contributions will be deducted from your pay.

2. Under a parallel contribution method, you can make simultaneous contributions to your TDA and Roth accounts. You’ll manage the accounts separately—separate elections for contribution rate, investment choices, etc. Once you reach your annual maximums ($24,500 in your TDA account, and $32,500 or $35,750 overall), your contributions will stop for the rest of 2026.

Keep in mind that, if your contributions stop in 2026 because you reached your contribution limit, they will resume in 2027 at the same rate unless you make a change.

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The contribution limit shown on the website and on my pay statements looks the same as last year’s. Shouldn’t it be updated?

For the first several pay periods of the year, your paystub will reflect the prior year’s contribution limit. This is because TRS cannot determine the contribution limit for the new year until after we receive members’ W-2 information in February.

This information allows TRS to determine members’ contribution limits, particularly for those affected by IRS’ new rules for “high earners.” (For members aged 50 and over who earned $150,000 or more in 2025, any age-based catch-up contributions in 2026 must be made to a Roth account).