TO: All Eligible Regular-Status Employees that wish to elect/maintain the Maximum Allowable Contribution in the Calendar Year
On November 13, 2025, the Internal Revenue Service (IRS) announced the 2026 cost-of-living adjustments, increasing the maximum annual dollar contribution limits for retirement plans. Effective January 1, 2026, the new contribution limits for the RCUH 403(b) Supplemental Retirement Annuity (SRA) Plan will increase as follows (see table below):
Supplemental Retirement Annuity (SRA) Maximums– Effective January 1, 2026
| Contribution Type | 2026 Maximum | 2025 Maximum |
| Employee Contributions | $24,500 ($1,020.83 per pay period) | $23,500 |
| Catch-Up: Additional “catch-up” contribution for individuals age 50+ by 12/31/2026 | Additional $8,000 Total Max: $32,500 ($1,354.17 per pay period) | Additional $7,500 Total Max: $31,000 |
| Super Catch-Up: Special higher limit "catch-up" contribution for individuals aged 60-63 by 12/31/2026 | Additional $11,250 Total Max: $35,750 ($1,489.59 per pay period) | Additional $11,250 Total Max: $34,750 |
SECURE 2.0 Act Mandatory Roth Catch-Up Contributions: Pursuant to SECURE 2.0 Act (Expanding Coverage and Increasing Retirement Savings), high-earning employees (with FICA wages $150,000 or greater for 2025) are required to make all Catch-Up (and Super Catch-Up, if eligible) contributions to their workplace retirement plans on a Roth (after-tax) basis starting January 1, 2026. Affected employees (meeting both earnings and age criteria) will be notified individually by RCUH Employee Benefits. RCUH will provide notification and additional materials when the Roth (post-tax) contributions to the Supplemental Retirement Annuity (SRA) 403 (b) accounts are available for RCUH payroll deductions. More details will be forthcoming.
How to Update Your SRA Contribution for Tax Year 2026: If you wish to adjust your maximum contribution from the first pay period of the tax year 2026 (Effective Pay Period: December 16-31, 2025 – pay day: January 7, 2026), please complete the Agreement for Salary Reduction Form (Form B-6) and submit via Employee Self-Service (ESS) eUpload no later than December 22, 2025 to ensure processing for the pay period: December 16-31.
To help our employees calculate their maximum contribution levels (per pay period) we are excited to provide our SRA Maximum Allowable Contribution Calculator (found in the Benefit Spotlight Series: Retirement Accounts). This tool may be used at any point in the year and adjusts the contribution amount based on how many pay periods left in the tax year.
RCUH does NOT automatically adjust your SRA contributions every year. Therefore, if you have previously elected the maximum allowable contributions, you must recalculate your pay period contribution and submit a new form. If you have any questions, please contact RCUH Human Resource Employee Benefits section at:
Email: [email protected]
Phone: (808) 956-7055 or (808) 956-2326
Relevant Links:
- IRS 2025-111: IRS Announcement – 2026 limit increases
- RCUH Policy 3.560 Retirement Plans
- Benefits Spotlight Series: Retirement Accounts (Including: information on the two types of RCUH retirement accounts, SRA Maximum Allowable Calculator, and Frequently Asked Questions)
- RCUH Supplemental Retirement Annuity (SRA) 403(b) Plan Agreement for Salary Reduction Form
