FAQs: 2026 SECURE 2.0 Catch-Up Contribution Changes

Key Points

• Mandatory Roth Catch-Up Contributions: Starting January 1, 2026, individuals age 50 and older earning more than $145,000 in the prior year must make catch-up contributions to a Roth (after-tax) account.
• Higher Limits for Ages 60–63: Workers aged 60 to 63 will be allowed to contribute the greater of $10,000 or 150% of the standard age-50 catch-up limit beginning in 2025; plans may opt into this provision.
• Impact on Plan Design: Employers must offer Roth options in their plans by 2026 if they have high-earning employees who wish to continue making catch-up contributions.
• Preparation Steps: Employers should review current retirement plan features, consider plan amendments, and communicate changes with impacted employees before 2026.
• Tax Strategy Shift: Contributions for high earners will be taxed up front but can grow and be withdrawn tax-free if Roth rules are met.

What is a “catch-up” contribution?

If you’re age 50 or older, you can contribute extra money to your 401(k), 403(b), or similar retirement plan beyond the standard annual limit. These additional amounts are referred to as catch-up contributions and are designed to help you save more as you get closer to retirement.

What’s changing in 2026?

Starting in 2026, there will be two main changes:

1. Mandatory After-Tax Contributions

• High-income earners aged 50+ must make all catch-up contributions to a Roth account, as opposed to pre-tax. 
• If you earned more than $145,000 in Social Security wages during the prior year (this amount will adjust for inflation), your catch-up contributions must go into a Roth account, not a traditional pre-tax account.
• This requirement goes into effect on January 1, 2026. 

2. Bigger catch-up limits for ages 60–63.

• If you’re 60 to 63 years old, you’ll be able to contribute even more; the greater of $10,000 or 150% of the regular age-50 catch-up limit (indexed for inflation).
• This higher limit took effect in 2025; however, it is fully relevant for 2026, especially if you will be age 60-63 during the year. 
• Please note: offering this higher limit is optional for plans; employers may choose whether to implement it.
  
  

Why are these changes happening?

Congress passed the SECURE 2.0 Act to help Americans save more for retirement and to modernize the rules.

The big takeaway: the upfront tax deduction is lost. Instead, contributions are after tax, and future distributions can be tax-free (subject to Roth rules). 

The higher limits for ages 60-63 let people nearing retirement save more quickly.

Who is considered a “high-income earner”?

For this rule, “high-income” means you earned more than $145,000 in wages (subject to FICA) from the same employer sponsoring your retirement plan in the prior year.

• Example: If you earned $150,000 in 2025, your 2026 catch-up contributions must be Roth.
• If you earned less than $145,000, you can still choose between pre-tax or Roth (if your plan allows both).

What if our plan doesn’t offer a Roth option?

Please keep in mind that if your retirement plan does not allow Roth contributions and you have employees impacted by the mandatory Roth catch-up contribution rule, those employees will not be able to make catch-up contributions after 2025 unless the plan is updated. Now is a great time to review your plan and determine if any updates or revisions will be needed.

How can we prepare for these changes?

Here are a few easy steps to stay ahead:

• Review 2025 income levels: If above $145,000, plan for Roth catch-up contributions in 2026.
• Check your plan: Verify if the employer-sponsored plan offers a Roth option. You may need to add one. 
• Take advantage of 2025: If employees prefer pre-tax catch-up contributions and qualify for them, they can still make them before the new rule begins.

What’s the bottom line?

• High earners (>$145,000): Catch-up contributions must be Roth starting in 2026.
• Ages 60–63: You can contribute more (up to $10,000 or 150% of the standard limit).
• Everyone 50+: Still eligible for catch-up contributions, but it’s time to review your strategy.

 Where can we get help?  

We recommend scheduling a review of your retirement plan, assessing contribution rules, and coordinating with your plan administrator and/or payroll provider to learn more details and make any needed adjustments to ensure you are ready for the 2026 transition and that contributions are made correctly. 

About the Authors

Kristen joined Trout CPA in 2018. With seventeen years of experience in payroll and accounting, Kristen brings extensive experience in managing payroll operations, compliance, and reporting. As the Payroll Supervisor at Trout CPA, she ensures accuracy, efficiency, and client satisfaction across all payroll functions, while supporting the firm’s broader payroll and accounting services.

As a member of the firm’s Outsourced Accounting team, Kristen leads the payroll department with deep expertise in payroll tax compliance, payroll conversions and implementation, vendor relationship management and payroll tax notice resolution. She is dedicated to delivering reliable, compliant, and client-focused payroll solutions that support both employee and business objectives.