Section 603 of the SECURE 2.0 Act, which passed in December 2022, goes into effect January 1, 2026. This provision requires age 50+ catch-up contributions in the Peach State Reserves (PSR) plans be made on a Roth (after-tax) basis after reaching the 402(g) limit with pre-tax contributions, for employees earning more than $150,000 (indexed for inflation each year) in Social Security wages (box 3 on W-2) in the preceding year. 

Contributions will automatically be changed to Roth (after-tax) within payroll systems once the 402(g) limit is met unless employees take action to opt-out. Employees wishing to opt-out of the automatic switch to Roth contributions must do so through GaBreeze at GaBreeze.ga.gov.

A notice will be sent by GaBreeze each January to employees impacted by the provision providing further details.