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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black;border:none windowtext 1.0pt;padding:0in"><img width="144" height="55" id="Picture_x0020_1" src="cid:image001.png@01DD57CA.2ACEF740" alt="A blue text on a black background
AI-generated content may be incorrect."></span><b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></b></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif">October 9, 2026</span></b><b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></b></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">To:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Department Benefits Representatives (DBRs)<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">From:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Central HR Benefits Office on behalf of UC Office of the President<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Re:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt;font-family:"Aptos Display",sans-serif">SECURE 2.0 Act Clarification</span></b><span style="font-size:11.0pt;font-family:"Aptos Display",sans-serif">: Processing
of Pretax and Roth Contributions Under 2026 Catch-Up Contribution Rules</span><span lang="EN" style="font-size:11.0pt;font-family:"Aptos Display",sans-serif"><o:p></o:p></span></p>
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<span style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p style="margin:0in"><span style="font-size:11.0pt;font-family:"Aptos Display",sans-serif;color:black">DBRs, please share this information via your internal listserv.
<b><u>Please do not reply to this email</u></b>. Please send a separate email with questions to
</span><span style="font-family:"Aptos Display",sans-serif"><a href="mailto:benefits@ucr.edu"><span style="font-size:11.0pt">benefits@ucr.edu</span></a></span><span style="font-size:11.0pt;font-family:"Aptos Display",sans-serif;color:black">.<o:p></o:p></span></p>
<p style="margin:0in"><span style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">UCOP provides additional clarification regarding the HRB issued on December 11, 2025 (below), in response to questions received from locations and employees concerning the application of SECURE
2.0 catch-up contribution rules. It explains how pretax and Roth contribution elections are applied under the 2026 contribution limits for UC's 403(b) and 457(b) Plans, including the SECURE 2.0 requirements for certain age-50+ catch-up contributions.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">The SECURE 2.0 Act made several changes to retirement plan rules, including a requirement that certain employees whose prior-year earnings exceed a specified earnings threshold and are age-50+,
catch-up contributions are required to be made on a Roth basis. <o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">UC applies catch-up contributions for employees subject to the SECURE 2.0 high-earner requirements as follows:<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>1. Employee elects pretax contributions only:</b><br>
Contributions are applied on a pretax basis up to the annual IRS limit of $24,500 in each plan. Any catch-up contributions are required to be applied as Roth contributions, up to the annual IRS limit of $32,500 per plan.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>2. Employee elects Roth contributions only:</b><br>
Contributions are applied on a Roth basis up to the annual IRS limit of $24,500 in each plan. Any catch-up contributions are required to be applied as Roth contributions, up to the annual IRS limit of $32,500 per plan.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>3. Employee elects both pretax and Roth contributions:</b><br>
Contributions are applied on a pretax and Roth basis up to the annual IRS limit of $24,500 in each plan. This limit applies to
<b>the combined total of both contribution types</b> rather than separately to each. As a result, an employee may reach the $24,500 limit before contributing $24,500 on a pretax basis. Any remaining contributions are then applied as Roth contributions, up to
the annual IRS limit of $32,500 per plan.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">UCOP recognize that the original communication could have provided greater clarity regarding how these contributions are administered. To address this, employee communications and UC's SECURE
2.0 resources on myUCretirement.com are being updated to further explain how an employee's contribution elections affect the treatment of catch-up contributions.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">Employees seeking additional information about SECURE 2.0 may review IRS guidance regarding catch-up contribution requirements for higher-earning participants, as well as the retirement resources
available on myUCretirement.com.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b><i>December 11, 2025 Communication:<o:p></o:p></i></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal;background:white">
<span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Beginning <b>January 1, 2026</b>, several significant updates to annual contribution limits and catch-up rules for the UC 403(b) and 457(b) Plans will take effect. These updates will apply to employees
who will be <b>age 50 or older in 2026 with 2025 earnings that exceed $150,000</b>. Some of the changes may directly affect the rules for whether their </span><span style="font-size:11.0pt;color:black;mso-ligatures:none">catch-up </span><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">contributions
are pretax (with taxes paid when they withdraw funds) or Roth (with after-tax contributions now and potential tax-free withdrawals in retirement).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal;background:white">
<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal;background:white">
<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Key Changes Effective January 1, 2026—<i>Employee Action May Be Required<o:p></o:p></i></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal;background:white">
<span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="color:#222222;margin-bottom:14.0pt;line-height:normal;mso-list:l1 level1 lfo3;background:white">
<b><span style="font-size:11.0pt;mso-ligatures:none">New 2026 contribution limits</span></b><span style="font-size:11.0pt;mso-ligatures:none"><br>
Eligible participants may contribute up to <b>$24,500</b> to each plan (pretax and/or Roth), plus an <b>$8,000 age-50+ catch-up to each plan </b>(see section 2 below for more information), for a total of <b>$32,500 per plan</b> or <b>$65,000 total </b></span><b><span style="font-size:11.0pt;color:black;mso-ligatures:none">(standard
and age-50+ catch-up combined) </span></b><b><span style="font-size:11.0pt;mso-ligatures:none">across both plans</span></b><span style="font-size:11.0pt;mso-ligatures:none">. Employees’ 2025 contribution amounts will automatically carry over into 2026.<o:p></o:p></span></li><li class="MsoNormal" style="color:#222222;margin-bottom:14.0pt;line-height:normal;mso-list:l1 level1 lfo3;background:white">
<b><span style="font-size:11.0pt;mso-ligatures:none">Required Roth catch-up contributions for high earners</span></b><span style="font-size:11.0pt;mso-ligatures:none"><br>
Under SECURE 2.0, if a participant’s <b>2025 Social Security (FICA) wages exceed $150,000</b>, all age-50+ catch-up contributions made in 2026 must be <b>Roth</b>. Regular contributions up to $24,500 may still be pretax, Roth or a combination, based on the
employee’s current election with Fidelity. Catch-up contributions will be treated as Roth even if the employee did not designate them as Roth with Fidelity.<o:p></o:p></span></li></ol>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;line-height:normal;background:white">
<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Here are some examples:<o:p></o:p></span></b></p>
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<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></b></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Employees’ Election with Fidelity</span></b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">How 2026 Contributions Will Be Treated</span></b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">All pretax<o:p></o:p></span></p>
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<td width="414" valign="top" style="width:310.5pt;border-top:none;border-left:none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">First $24,500 is pretax; amounts over $24,500 are Roth.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">All Roth<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">All contributions are Roth.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Mix of pretax and Roth<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Mix applies up to $24,500; amounts above $24,500 are Roth until the Roth catch-up limit is reached. Then, pretax and Roth deductions
resume as originally elected.<o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="3" type="1">
<li class="MsoNormal" style="color:#222222;margin-bottom:14.0pt;line-height:normal;mso-list:l3 level1 lfo4;background:white">
<b><span style="font-size:11.0pt;mso-ligatures:none">New “Super Catch-Up” for participants ages 60–63</span></b><span style="font-size:11.0pt;mso-ligatures:none"><br>
Participants who will be ages <b>60–63 in 2026</b> may contribute up to <b>$11,250 in catch-up contributions per plan</b>. This allows up to <b>$35,750 per plan</b>, or as much as <b>$71,500 across both plans</b>. The enhanced “super catch-up” limit for ages
60–63 <b>replaces the standard $8,000 catch-up</b> noted above and is <b>subject to the same SECURE 2.0 Roth catch-up requirement for high earners</b>.<o:p></o:p></span></li></ol>
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<span style="font-size:11.0pt;color:#222222;mso-ligatures:none">High earning employees who prefer to manage their pretax vs. Roth contributions more intentionally in 2026 may consider splitting contributions across both 403(b) and 457(b) plans; details are
included in this </span><span style="color:black"><a href="https://fwc.widen.net/s/hcv255dczc/secure-2.0-email" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">participant communication</span></a></span><span style="font-size:11.0pt;color:black;mso-ligatures:none">.<o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></p>
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<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Next Steps for Employees<o:p></o:p></span></b></p>
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<span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p> </o:p></span></p>
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<span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Participants are encouraged to:<o:p></o:p></span></p>
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<li class="MsoNormal" style="color:#222222;margin-bottom:14.0pt;line-height:normal;mso-list:l2 level1 lfo5;background:white">
<span style="color:black"><a href="https://digital.fidelity.com/prgw/digital/wos/one-on-one?planSponsorId=700003" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">Schedule a 1:1 consultation</span></a></span><span style="font-size:11.0pt;mso-ligatures:none"> or
call <b>1-800-558-9182 </b>(no appointment needed) to speak<b> </b>with a UC-dedicated Fidelity Retirement Planner about their 2026 contribution strategy, the impact of required Roth catch-ups, modifying their elections, planning for retirement and more. Employees
can learn more about the UC 403(b) and 457(b) Plans on </span><span style="color:black"><a href="https://myucretirement.com/" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">myUCretirement.com</span></a></span><span style="font-size:11.0pt;mso-ligatures:none">.<o:p></o:p></span></li><li class="MsoNormal" style="color:#222222;margin-bottom:14.0pt;line-height:normal;mso-list:l2 level1 lfo5;background:white">
<span style="font-size:11.0pt;mso-ligatures:none">Review their January 2026 contribution elections in </span><span style="color:black"><a href="https://nb.fidelity.com/static/mybenefits/netbenefitslogin/#/login" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">NetBenefits</span></a></span><span style="font-size:11.0pt;mso-ligatures:none">.
Deferral elections can be changed at any time on </span><span style="color:black"><a href="https://nb.fidelity.com/static/mybenefits/netbenefitslogin/#/login" target="_blank"><b><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">NetBenefits</span></b></a></span><b><span style="font-size:11.0pt;mso-ligatures:none"> </span></b><span style="font-size:11.0pt;mso-ligatures:none">or
by calling <b>1-800-558-9182</b>.<b> </b>However, to help ensure that their elections take effect when they intend, employees should submit their election changes according to the pay frequency schedule on the </span><span style="color:black"><a href="https://ucop.edu/ucpath-center/_files/mypath/calendar/rsp-enrollment-change-dates-2026.pdf" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">UCPath
2026 payroll calendar</span></a></span><span style="font-size:11.0pt;mso-ligatures:none"> or the </span><span style="color:black"><a href="https://ucop.edu/ucpath-center/_files/mypath/calendar/lbnl-rsp-enrollment-change-dates-2026.pdf" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">UCPath
2026 payroll calendar for LBNL employees</span></a></span><span style="font-size:11.0pt;mso-ligatures:none">.<o:p></o:p></span></li></ul>
<p class="MsoNormal" style="margin-bottom:14.0pt;line-height:normal;background:white">
<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">If no changes are made, age-50 catch-up contributions for high earners will automatically be processed as Roth—as required by SECURE 2.0.</span></b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:14.0pt;line-height:normal;background:white">
<b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Communications & Resources</span></b><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"><br>
A detailed </span><span style="color:black"><a href="https://fwc.widen.net/s/hcv255dczc/secure-2.0-email" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">email announcement</span></a></span><span style="font-size:11.0pt;color:#222222;mso-ligatures:none"> outlining
these upcoming 2026 changes will also be issued to active plan participants who will be age 50 or older in 2026 and whose 2025 earnings exceed $150,000. The UCPath Center also plans to distribute a similar update.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:14.0pt;line-height:normal;background:white">
<span style="font-size:11.0pt;color:#222222;mso-ligatures:none">Employees can learn more about the 2026 IRS contribution limits on </span><span style="color:black"><a href="https://www.myucretirement.com/resources/articles/0085" target="_blank"><span style="font-size:11.0pt;color:#1155CC;mso-ligatures:none">myUCretirement.com</span></a></span><span style="font-size:11.0pt;color:#222222;mso-ligatures:none">.
Additional communications about the new limits will be sent to active participants in January 2026.<o:p></o:p></span></p>
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<p><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
<p><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
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