What Is the 401(k) Roth Catch-Up Rule Starting in 2026?
Beginning January 1, 2026, SECURE 2.0 requires that catch-up contributions must be designated Roth (after-tax), but only for certain high earners:
• If your FICA wages from the prior year exceed $150,000, all catch-up amounts you make in 2026 must be Roth — not pre-tax.
That means the extra $8,000 or $11,250 in catch-up contributions must be made with after-tax dollars, deposited into a Roth 401(k).
If your plan does not offer a Roth 401(k) option, you cannot make catch-up contributions at all once this Roth requirement applies. Your plan must support Roth contributions for you to access catch-up space.
For people who earn less than the threshold, catch-up contributions can be made as either traditional (pre-tax) or Roth, if the plan allows.
For 2026, if you're a high-earner age 50 or older, you can choose to make pre-tax and/or Roth contributions to your retirement account up to the $24,500 limit; however, any catch-up contributions must be made to a Roth account.
Why This Matters to You
• Roth contributions are taxed today, but withdrawals are generally tax-free once you meet the rules. That can reduce taxable income in retirement and help manage Social Security taxation.
• If you expected to lower your taxable income with catch-up contributions, that may change if you must use Roth.
• If your plan does not offer Roth, you lose catch-up contribution access under this rule.
Just So You Know
What are the different types of 401(k) plans?
A 401(k) is a workplace retirement account. Money you elect to defer from your paycheck goes into this account and is invested for growth.
There are two contribution types:
Traditional 401(k)
• Money goes in before federal income tax.
• Reduces taxable income today.
• Withdrawals in retirement are taxable.
Roth 401(k)
• Money goes in after tax.
• No tax break today.
• Withdrawals in retirement are generally tax-free if rules are met.
Not all employers offer a Roth 401(k) option. If your plan does not offer it, you cannot make Roth contributions, including Roth catch-up contributions starting in 2026 if you have a salary above $150,000.
401(k) Contribution and Catch-Up Limits in 2026
These are the IRS limits for 2026 — updated for cost-of-living adjustments and SECURE 2.0.
Standard Contribution
• Everyone under age 50: up to $24,500 in 2026.
Catch-Up Contributions
Catch-up contributions are extra money people age 50 and older can add above the standard limit.
There are two tiers:
1. Standard Catch-Up (Age 50 and Over)
• Age 50+ up to $8,000 extra.
• This brings the total possible contribution to $32,500 (standard + catch-up).
2. Enhanced Catch-Up (Ages 60–63)
• If you are between ages 60 and 63 in 2026, you can make up to $11,250 extra.
• This brings the total possible contribution to $35,750.
These are higher than prior years and are part of SECURE 2.0 enhancements.
Bottom Line for 2026
Confirm whether your 401(k) plan offers Roth. If it does not, and you expect to be in the catch-up group or above the income threshold, you could lose the ability to make catch-up contributions.
Understand whether your contributions are traditional or Roth today. With higher limits and mandatory Roth catch-ups for some, how and where you save can have tax implications decades down the road.
If you are unsure what type of accounts you have or how these updates apply to your situation, it is a good idea to take a closer look.
At Dorsey Wealth Management, we’re here to help you navigate what this means for you. If you’d like to explore how these changes might fit into your retirement strategy or overall financial picture, we invite you to schedule a complimentary 30-minute introductory call.
Reach out to us at (310) 370-7776 or angela@dorseywealth.com to start the conversation. We’d love the opportunity to learn about what matters most to you and discuss how we can support your vision for the future.
About Angela
Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER® professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.