Section 603 of the SECURE 2.0 Act

IRS guidance indicates Section 603 of the SECURE 2.0 Act does not apply to your employees' Ohio DC contributions.

Section 603, effective in 2026, requires some employees earning over $145,000 in the previous year to make catch-up contributions on a Roth (after-tax) basis. However, Ohio DC participants are exempt because they do not pay into Social Security and therefore have no FICA wages reported on their W-2 form.

What does this mean for you:

• If your employee is 50 or older, they can continue making pre-tax catch-up contributions.
• No changes are needed to current contributions due to Section 603, regardless of salary.

We'll continue to monitor any regulatory updates and keep you informed of changes that may impact your employees' retirement savings.

Opt-in Enrollment Form

Many of your peers require newly hired employees to complete a simple form to opt-in or out of Ohio DC. This process ensures they're aware of this important benefit. We encourage you to consider adopting the same practice by using the Opt-in Enrollment Form.

Advantages of using this form include:

• All new employees learn about saving for retirement early in their career.
• The form will help you document that you (as the employer) have met your fiduciary responsibility to educate your employees about their retirement benefits.
• The ability for you to attract and retain key employees because of their increased awareness of your comprehensive benefits package.

Many employers also provide this form annually to all non-enrolled employees or during their open enrollment period. Employees can scan the QR code on the form to enroll online or you can mail or fax the completed form to Ohio DC. Please remember to print out both pages of the Opt-in Enrollment Form.

Mail to:

Ohio Deferred Compensation

257 East Town Street, Suite 457

Columbus, Ohio 43215-4626

Fax: 614-222-9457

ACH Payment Option

Ohio DC supports ACH payments accompanied by an email notification. We strongly encourage all employers to submit their ACH payments through the Ohio Business Gateway. For assistance setting up your organization's ACH payment option, please contact us at Finance@ohiodc.org.

Ohio DC Participant Webinars

Ohio DC offers webinars on a variety of topics. Please share this link with your employees, so they can register for any upcoming webinar of interest. August webinar topics include:

• Managing the Taxes on Your Retirement Income: August 6
• Retired Minds Want to Know: August 13 & 20
• Ask Ohio DC: August 27

If employees can't join one of the live webinars, they are recorded, so your employees can watch them later at their convenience.