Effective 2026 NYCDCP Contribution Rules for “High-Income” Active FDNY/NYPD Members

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Effective January 1, 2026, a significant change from the SECURE Act 2.0 will impact how certain catch-up contributions are made to the NYC Deferred Compensation Plan(NYCDCP) 457 and 401(k) accounts. Under this new rule, active members who are age 50 or older and earned more than a projected $150,000 in FICA wages from NYC in the previous year (2025) will be required to make all their catch-up contributions on a post-tax (Roth) basis. This means the catch-up portion will not provide an immediate tax deduction, but the contributions and their earnings will grow tax-free, and qualified withdrawals in retirement will also be tax-free.

Here is a summary of the contribution types and their projected 2026 limits:

2026 Standard 457/401k Projected Limit
$24,000 to $24,500*
Pre-tax OR post-tax (Roth)

2026 Standard Catch-Up (Age 50+)
$8,000*
Post-tax only for high-income earners

2026 Enhanced Catch-Up (Age 60-63)
$12,000*
Post-tax only for high-income earners

*Note: The projected limits are subject to change based on the official inflation adjustment announced by the IRS in late 2025.

Illustrative Examples:

• Age 50-59: An active member who is 52 and earns over the wage threshold can make a standard contribution of up to ~$24,500 (pre-tax or Roth). If they also choose to make the standard catch-up contribution, the additional $8,000 must be contributed on a post-tax basis to a Roth 457 or Roth 401k.

• Age 60-63: An active member who is 60 and earns over the wage threshold can make the standard contribution, the standard catch-up, and an enhanced catch-up. In this case, both the $8,000 standard catch-up and the $12,000 enhanced catch-up must be done on a post-tax (Roth) basis.