Before-Tax Versus After-Tax Roth Contributions

The Supplemental Retirement & Savings Plan gives you a choice between making your contributions on a tax-deferred or after-tax basis or a combination of tax-deferred and Roth after-tax.

Before-Tax Contributions
You pay no federal or state income tax on the before-tax money you put into the Supplemental Retirement and Savings Plan or the accumulated investment earnings until you receive it. These are referred to as “tax-deferred contributions.”

After-Tax Roth Contributions
You pay federal and state income tax on the money you put into the Supplemental Retirement and Savings Plan on an after-tax basis. The investment earnings  accumulate tax-free and are paid to you tax-free at the time you receive it as long as the withdrawal is qualified. After-tax Roth contributions may only be made  through Fidelity.

Changes to the Supplemental Retirement and Savings Plan Catch Up Contributions

Beginning January 1, 2026, certain catch-up contributions to the Boston University Supplemental Retirement and Savings Plan are required to be made on a Roth (after-tax) basis, in accordance with the Secure Act 2.0 of 2022.

 What’s Changing

• If you are age 50 or older in 2026, earned more than $150,000 in 2025, and make catch-up contributions, those contributions will automatically be designated as Roth contributions (unless you are already contributing on a Roth basis).
• For 2026, the maximum employee contribution is $24,500, with an additional catch-up limit of $8,000, for a total of $32,500. If your 2025 earnings exceed $150,000, any portion of the $8,000 catch-up contribution must be made on a Roth(after-tax) basis.
• If you turn ages 60, 61, 62, or 63 in 2026, your catch-up limit increases to $11,250, allowing a total contribution of $35,750. If your 2025 earnings exceed $150,000, any portion of the $11,250 catch-up contribution must be made on a Roth(after-tax) basis.