Updates to Cornell's TDA Retirement Plan

Several important updates to the Cornell University Tax-Deferred Annuity (TDA) Plan will take effect on January 1, 2026, as part of changes made under the SECURE 2.0 Act. These updates are a Summary of Material Modification to the Cornell TDA plan, and may impact how you contribute to your retirement account and the tax treatment of your contributions.

Roth Contributions Available For All TDA Participants

Starting on January 1, 2026, you may choose to make your contributions to the TDA through either a pre-tax or Roth basis, or a combination of both.

• Pre-tax contributions reduce your taxable income now. Income taxes are paid when you withdraw funds in retirement.
• Roth contributions are made after tax, and qualified withdrawals in retirement are tax-free.

As always, you may elect the amount or percentage that will be contributed to your account directly from your paycheck and select how those contributions are allocated between Fidelity Investments and/or TIAA. For instructions on how to allocate your contributions, please refer to the retirement savings election instructions located here.

The decision to make your TDA contributions on a pre-tax basis or a Roth basis will have an impact on the amount of taxes you pay both now and at retirement. Since each participant is in a unique situation, we recommend that you consult with your tax advisor regarding this option.

Contribution Limit Changes

Generally speaking, for 2026 the annual IRS limit on employee contributions to the TDA is $24,500.

Under some circumstances, described in greater detail below, you may be allowed to contribute amounts above that limit. These higher limits are known as “catch-up contributions.” A catch-up contribution is an additional amount that eligible participants are allowed to contribute to their retirement plan above the standard IRS annual contribution limits. Catch-up contributions are intended to help individuals who may be behind on retirement savings boost their account balances as they approach retirement.

15-Year Catch-Up

The 15-year catch-up provision allows employees who have completed at least 15 years of service with Cornell to make additional contributions to their TDA accounts. Eligible participants can contribute up to an extra $3,000 per year, with a lifetime limit of $15,000.

The yearly 15-year catch-up amount permitted is the least of:

1. $3,000; or
2. $15,000 minus the prior 15-year catch-up contributions; or
3. $5,000 times years of service, minus the total amount of TDA contributions made in prior years.

Any contributions made as 15-year catch-up contributions will be made in accordance with the method (pre-tax or Roth) you chose for your TDA election in Workday.

Age 50+ Catch-Up

Once you reach age 50, you can make additional contributions to your TDA account. The Age 50+ catch-up contribution limit is $8,000 in 2026. Note that if both 15-year catch-up contributions and Age 50+ catch-up contributions are available to you, the law requires that catch-up contribution amounts be first applied to the 15-year catch-up and then to the Age 50+ catch-up.

Age 50+ catch-up contributions can be made on a pre-tax or Roth basis, unless mandatory Roth rules apply (see below). The method will be in accordance with your TDA election in Workday.

Super Catch-Up

Participants between the ages of 60 to 63 can make additional contributions to their retirement savings through an enhanced catch-up contribution option. This “Super catch-up” option is a new feature in the TDA Plan, and permits catch-up contributions up to $11,250 (instead of the $8,000 permitted for the Age 50+ catch-up).

Your Super catch-up contributions may be made as pre-tax or Roth contributions, unless mandatory Roth rules apply (see below). The method will be in accordance with your TDA election in Workday.

Mandatory Roth Catch-Up For High Earners

New IRS rules require that catch-up contributions made by certain higher-income participants must be made on a Roth basis, rather than a pre-tax basis. Starting on January 1, 2026, employees whose wages from Cornell exceed $150,000 in the prior calendar year will be subject to this rule. (For easy reference, this limit will be determined by your Box 3 compensation on your 2026 W2.)

If you are making pre-tax contributions to your TDA account and made more than $150,000 in the prior calendar year, your TDA catch-up contributions will automatically be deemed Roth contributions. Note, however, that this rule does not apply to any 15-year catch-up contributions.

If you do not wish to be subject to the mandatory Roth rule, you may choose to not make catch-up contributions that would be subject to the rule. You can adjust your Workday election at any time prior to the closing of a pay period.

Next Steps

For most participants, no immediate action is required to maintain your current TDA enrollment.

Specifically, if you earned over $150,000 in the prior calendar year and are currently making catch-up contributions, the system will automatically convert your catch-up contributions (excluding the 15-year service catch-up) to a Roth basis to comply with new IRS rules. You do not need to log in to make this change.

Consult with a tax advisor to see if Roth contributions or increased catch-up limits benefit your specific situation. You should change your election in Workday if you wish to change your strategy to take advantage of the new options.

• Defer on a Roth basis: If you want to begin making Roth (after-tax) contributions rather than, or in addition to, your standard pre-tax contributions, you must actively update your election.
• Increase Contributions: If you wish to utilize the increased IRS contribution limit ($24,500), the "Super Catch-up" for ages 60–63 ($11,250), or the standard Age 50+ catch-up ($8,000), you must adjust your contribution percentage or amount in Workday.

Updating your contribution in Workday: You can make changes to your TDA elections at any time in Workday, but if you want to have updates effective for your first paycheck of the new year:

• The ability to update your TDA election for post-tax Roth contributions will be available in Workday as of January 5.
• You must submit your updated elections in Workday by January 9, 2026 (semi-monthly pay) or January 7, 2026 (biweekly pay).
• When updating your TDA contribution in Workday, use a benefit event date of 01/02/2026 as the effective date of your election.

How to Update Your Retirement Savings in Workday

If you have any questions or need clarifications, contact the HR Services & Transitions Center through the Benefit Services Help System or via phone at 607-255-3936