New Roth Catch-Up Rule Hits High Earners In 2026

Older workers nearing retirement have long enjoyed a valuable benefit: the ability to make additional, tax-deferred contributions to their workplace retirement plans. But under a new federal rule taking effect in 2026, that benefit is changing for many.

Beginning January 1, 2026, employees age 50 or older who earn more than $145,000 in the prior year will no longer be able to make pre-tax catch-up contributions to 401(k), 403(b), or 457(b) plans. Instead, these contributions must go into a Roth account, meaning they’ll be taxed upfront but grow and withdraw tax-free later.

The change stems from the SECURE 2.0 Act, which included dozens of provisions designed to expand retirement savings and modernize plan administration. The Roth catch-up rule was one of the most debated, prompting the IRS to delay its start date from 2024 to 2026 to give employers time to update payroll systems and plan documents.

In fact, just this month we've seen solo 401k plan providers update their plans to provide more options as well!