Saving for Retirement

Montgomery College offers its employees a range of options to save money for retirement. There are three retirement plans; one is only available to certain employees hired before January 1, 1980. All employees who are eligible for benefits must participate in one of the retirement plans. In addition to the retirement plans, the College offers supplemental retirement annuities that allow you to save more toward your retirement.

First let's look at the current retirement options, then we'll move on to the supplemental plan.

Primary Retirement Plans

Learn more about the Maryland State Retirement and Pension System. new window

Supplemental Retirement Accounts

In addition to the retirement plans above, you can save more with a Supplemental Retirement Account (SRA). This program lets you reduce your taxable income and save for retirement. Each plan offers a variety of fixed and variable funds in which to invest your contributions and allows you to make adjustments to your contribution at any time. Select one of the SRA providers below.

Annual Contribution Limits and Roth Requirements

The Internal Revenue Service limits the total amount of retirement contributions each calendar year. Employees may contribute the IRS maximum to both a 403(b) account and a 457(b) account annually.

For 2026, the IRS retirement contribution maximum is $24,500, up from $23,500 in 2025. Employees may contribute up to their applicable maximum for 403(b) and 457(b) accounts separately, and elections may be a combination of traditional pre-tax and/or Roth (after-tax) contributions, up to the applicable maximum.

Employees aged 50 (or turning 50 any date in the applicable calendar year) to 59 and 64 or older can contribute an additional $8,000, known as a “catch-up” contribution, for an overall total of $32,500.

Employees aged 60 (or turning 60 any date in the applicable calendar year) to 63 can contribute an additional $11,250, known as a “super catch-up” contribution, for an overall total of $35,750.

In addition, new SECURE 2.0 regulations require certain employees to make any catch-up contributions above the standard annual maximum as Roth (after-tax) contributions. Employees are affected by this change only if all of the following are true:

• You will be age 50 or older in 2026, and
• You elect to make your applicable catch-up contributions, and
• Your 2025 W-2 wages from Montgomery College total $150,000 or more

Employees age 50 or older who earned less than $150,000 in the prior year are not impacted and may continue to make catch-up contributions on either a pre-tax or Roth basis.

SRA Account Is Required—Do This First

To open a new account, first set up the account with the vendor you select. Then set up your contribution amount in Workday.

Remember, effective March 1, 2025, employee SRA contributions must be made as a percentage of pay. Read the memo (PDF, )  for additional details.