Retirement Savings

The SECURE 2.0 Act includes important changes that affect retirement plan contribution limits and how certain catch-up contributions must be made beginning January 1, 2026.

Updated Contribution Limits for 2026

• The standard employee contribution limit is $24,500.

• Employees turning age 50–59 or age 64+ in 2026 may contribute an additional $8,000 as a catch-up contribution.

• Employees turning age 60–63 in 2026 may contribute a higher catch-up amount of $11,250.

• Contribution limits are indexed annually and may change in future years.

New Roth Requirement for Catch-Up Contributions

Beginning in 2026, federal law requires some employees to make age-based catch-up contributions as Roth (after-tax) contributions:

• If your prior-year wages (W-2 Box 3) from Lewis & Clark were more than $150,000, any age-based catch-up contributions must be made as Roth contributions.

• If your prior-year wages were $150,000 or less, you may be able to choose whether catch-up contributions are made as pre-tax, Roth, or a combination, depending on plan design.

• Roth catch-up contributions are taxed when contributed but may be withdrawn tax-free in retirement, provided IRS requirements are met.

Deemed Roth Election

For employees subject to the Roth catch-up requirement, the plan may automatically treat catch-up contributions as Roth contributions (referred to as a deemed Roth election). Employees will still have the opportunity to change their elections, including stopping catch-up contributions if desired.

Important Notes

• Catch-up contribution rules apply only to active employees age 50 or older.

• The $150,000 wage threshold is based on prior-year wages from the employer sponsoring the plan.

• Retirement and tax rules can be complex; employees are encouraged to consult a tax professional or financial advisor when making decisions.

403(b) vs. Roth Contributions – Choosing the Right Option

Employees at Lewis & Clark College can contribute to their TIAA 403(b) retirement plan in two ways: Traditional 403(b) (Pre-Tax) Contributions and Roth (After-Tax) Contributions. Both options help you save for retirement, but they differ in how they impact your taxes.

Key Differences:

Can I Contribute to Both?

Yes! You can split your contributions between pre-tax 403(b) and Roth 403(b) to diversify your tax strategy. However, your combined contributions cannot exceed the IRS annual limit ($23,500 in 2025, with additional catch-up contributions for those age 50+ ($7,500 extra) and 60–63 ($11,250 extra)).

***Lewis & Clark’s contributions can be made only to the 403(b) account. Unfortunately, L&C is unable to contribute to the Roth IRA***

Need Help Choosing? Consider your current vs. future tax situation or consult with a financial advisor from TIAA for personalized guidance.

Our TIAA Account Advisor for Lewis & Clark College

Andrew (AJ) Martinez

amartinez@tiaa.org
(503) 265-3905

To sign up for a one-on-one meeting, call 1-800-732-8353 or schedule online www.tiaa-cref.org/ScheduleNow (Choose One-on-One Consultations - At your workplace – Oregon – Lewis & Clark College)

Employees are automatically enrolled in TIAA beginning their second month of employment. The automatic contribution is 3% and it is deducted pre-tax from your paycheck each month.

• You may waive contributions in Workday when you elect your benefits during your first month of employment.
• You can also change your retirement contribution in Workday at any time.

   ***Changes to retirement contributions submitted on or after the 20th of each month will not take effect until the following month’s payroll.***

Contribution Limits (2026)

• All employees can contribute up to $24,500 annually.
• Employees age 50+ can contribute an additional $8,000 catch-up contribution.
• Employees aged 60–63 are eligible for a higher catch-up contribution of $11,250.

For the 2026 tax year, the total contribution limit for 403(b) plans, including both employee and employer contributions, is $72,000.

Eligibility for Employer Contributions

• All benefit-eligible employees will begin receiving the 9% contribution from Lewis & Clark in their 13th month of employment.
• Employer contributions are deposited when paychecks are completed each month.

New employees who previously worked in higher education may be eligible to waive the one-year waiting period for employer retirement contributions. To qualify, you must have:

1. Worked 1,000+ hours at a higher education institution for at least one year,
2. Within six months before joining Lewis & Clark, and
3. Received employer retirement contributions from your former institution.

***Proof of participation in your previous employer’s retirement plan must be submitted within 30 days of employment.***

Please send the template below to your former employer’s HR department. Ask them to complete the template on their college letterhead and email it to hr@lclark.edu.

Curious about taking a loan from your retirement account? Contact our TIAA advisor A.J. Martinez  to inquire about the process and any specific requirements.

Andrew (AJ) Martinez

amartinez@tiaa.org
(503) 265-3905

TIAA FAQs about Loans

TIAA Retirement Plan Loan Flyer

When your employment with Lewis & Clark ends, you have several options for managing your retirement account through TIAA. You may choose to keep your funds in your TIAA account, roll them over to another retirement plan, or take a distribution, depending on your individual financial goals and retirement timeline.

For an overview of your options, refer to the TIAA Know Your Options Guide.

TIAA Customer Service: (800) 842-2776

Our TIAA Account Advisor for Lewis & Clark College

Andrew (AJ) Martinez

amartinez@tiaa.org
(503) 265-3905

To sign up for a one-on-one meeting, call 1-800-732-8353 or schedule online www.tiaa-cref.org/ScheduleNow (Choose One-on-One Consultations - At your workplace – Oregon – Lewis & Clark College)

Employees can invest their 403(b) contributions through TIAA with the following options:

• Mutual Funds & Annuity Contracts – Choose from a variety of investment options based on your risk tolerance and retirement goals.
• Self-Directed Investments – You control how your contributions are allocated across available funds.
• Default Investment Option – If you don’t select specific investments, your funds will be placed in an employer-designated default investment.
• Periodic Adjustments – You can update your investment choices as needed.
• ERISA Section 404(c) Compliance – Employees are responsible for their investment decisions, and regular account statements help track performance.

Tip: Review your options regularly to ensure your investments align with your retirement goals!

Visit the L&C TIAA Microsite to learn more about available investments and your retirement plan!

TIAA 403(b) Summary Plan Description

When enrolling in the TIAA 403(b) Plan, employees should designate a beneficiary to receive their retirement benefits in the event of their passing. Beneficiary designations ensure that your funds are distributed according to your wishes.

Key Rules & Considerations Under ERISA

• Spousal Rights:
  • If you are married, 50% of your account balance must be paid to your spouse as a qualified annuity, unless your spouse provides written, notarized consent to waive this right.
  • You can designate a non-spouse beneficiary for the remaining 50% of your balance without spousal consent.
• Unmarried Employees: You may designate any beneficiary of your choice.
• Divorce Impact:
  • If your spouse was your designated beneficiary and you later divorce, that designation becomes invalid unless you update it post-divorce.
  • If you remarry, your new spouse automatically becomes the primary beneficiary unless you update your election.
• No Designated Beneficiary: If no valid beneficiary is on file:
  • 50% of your account goes to your surviving spouse (if applicable).
  • 50% is paid to your estate. If unmarried or without a surviving spouse, the entire balance is paid to your estate​.

How to Update Your Beneficiary

1. Log in to your TIAA account online.
2. Navigate to the “Beneficiary Designation” section.
3. Enter or update your primary and contingent beneficiaries.
4. If married and designating a non-spouse, have your spouse complete the notarized waiver.
5. Save and confirm your changes.

Tip: Review and update your beneficiary designations regularly, especially after major life events like marriage, divorce, or the birth of a child.

About the 403(b) Committee

The 403(b) Committee serves as the named fiduciary for Lewis & Clark College’s retirement plan, ensuring it is managed in compliance with ERISA and in the best interests of participants. The committee has discretionary authority to oversee all aspects of the plan’s administration, including:

• Plan Administration – Establishing and enforcing rules for efficient plan management.
• Investment Oversight – Selecting and monitoring Annuity Contracts and Custodial Accounts available for contributions.
• Fiduciary Responsibilities – Appointing consultants, legal counsel, and other advisors as needed.
• Delegation & Governance – Assigning responsibilities to ensure effective oversight.

Committee Structure & Functions

• Meets quarterly, facilitated by Multnomah Group, the plan’s Retirement Plan Consultant.
• Reviews plan performance and ensures investment options align with participant needs.
• Assesses and adjusts investment selections to maintain diversification across various risk levels.
• Monitors plan costs to ensure participants receive competitive investment options at fair pricing.

The 403(b) Committee’s goal is to maintain a well-managed, cost-effective retirement plan that helps employees achieve their long-term financial goals.