Maximize Your Contributions
My Retirement Savings
Main content start
Maximize Your Before‐Tax Contributions
Before we show you how to reach your before-tax maximum, keep in mind these basic rules that apply to TDA, Roth and CRA accounts in the SCRP.
- Eligible earnings include your base salary, paid leave and any summer supplemental pay you receive after becoming eligible for the plan, up to $350,000.
- If you are under age 50, you can make $23,500 in before-tax contributions to the CRA and TDA, plus Roth after-tax contributions.
- If you are age 50 by Dec. 31, 2025, you can make an additional $7,500 in only before-tax or Roth contributions.
- Beginning Jan. 1, 2025, participants aged 60-63 by Dec. 31, 2025, are eligible for $11,250 in additional contributions (Pre-Tax and/or Roth).
- Depending on your birth year, the 402g limits are as follows:
- Born 1976 or later: $23,500
- Born 1966-1975: $31,000
- Born 1962-1965: $34,750
- Born 1961 or earlier: $31,000
- If you reach your maximum contribution during the year, you can continue to save with after-tax contributions. If you do, you may want to discontinue your after-tax contributions before January of the following year when your before-tax contributions automatically re-start.
- When determining your before-tax contribution, be aware that limits apply to all before-tax contributions you make during the calendar year. Be sure to take into consideration before-tax contributions made to a prior employer’s plan within the same calendar year, if applicable.
Example: Employee A
Employee A wants to maximize before-tax contributions and avoid making after-tax contributions. Here’s how it’s done:
2025 eligible earnings | $75,000 |
Age at Dec. 31, 2025 | 50 |
Maximum before-tax and Roth contribution | If you were born in 1976 or later, you can contribute $23,500 (no catch-up contribution). If you were born in 1962 through 1965, you can contribute $34,750 ($23,500 + $11,250 catch-up contribution). If you were born between 1966-1975 or 1961 or earlier, you can contribute $31,000 ($23,500 + $7,500 catch-up contribution). For ex: If you are age 50 or older by Dec. 31, 2025, you can contribute up to $31,000 ($23,500 + $7,500 catch-up contribution). |
Deduction percentage | $31,000 is approximately 41% of eligible earnings |
Employee A could elect to contribute 41% each pay period throughout the year in order to contribute the maximum allowed.
When Employee A’s contributions reach the $31,000 or $34,750 limit, their Pre-Tax or Roth contributions will automatically stop.