Roth Update for CAP Plans

If any of your employees contribute to Social Security, you must take action to adopt the Roth option in your 401(k) and 457 this year. Federal law requires that any employee (1) age 50 or older and (2) who has Social Security wages above $145,000 (which will be increased in future years) must contribute catch-up contributions on a Roth, rather than pre-tax, basis starting in 2026.

Please see PERA’s website for more information. The Defined Contribution team is standing by to make this a seamless transition for you and your employees—please contact them at definedcontribution@copera.org to get the process started.