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Update to DCP catch-up options for high income earners

Posted on February 17, 2026

There’s a new IRS rule that may affect how high income earners can contribute to their Washington Deferred Compensation Program (DCP) account.

Who is affected?

The way you contribute to DCP may be affected if you meet all of the following requirements:

You will be 50 or older this year (by Dec. 31, 2026),
Your income is subject to FICA* taxes, and
You earned at least $150,000 in the prior calendar year with your current employer.

*You can find your total FICA wages in Box 3 on your 2025 Form W-2.

If your position is exempt from Social Security, you are not affected by the change. Some members are not subject to FICA taxes and do not have Social Security taxes deducted from their wages.

What’s changing?

High income earners can still participate in DCP catch-up contributions, but they must be Roth contributions. Contributions throughout the year can be pretax or Roth or both, up to the normal limit of $24,500. However, any contributions after that must be Roth.

The DRS record keeper, Voya Financial, will send an email and a letter in early March to all DCP participants who could be affected by this.

Bar chart showing $24,500 can be contributed Roth or pretax and the additional contributions of $8,000 must be Roth for high income earners for a total of $32,500 for the year.

Special catch-up exception

If you are using the three-year special catch-up (within three years of your retirement age), your additional contributions may continue to be pretax, Roth, or a combination of both.