Heads Up: New Roth Catch-Up Rules Coming for High Earners in 2026
A major change from the SECURE 2.0 Act is on the horizon — and high earners should prepare now. Starting January 1, 2026, certain employees who make catch-up contributions to employer retirement plans must make those contributions as Roth (after-tax) dollars.
Who Will Be Affected?
You fall under this rule if:
- You’re age 50+
- You earned more than $145,000 in FICA wages from your employer in the prior year (the 2025 calendar year determines 2026 status)
- You participate in a 401(k), 403(b), or governmental 457(b) plan
If these apply, pre-tax catch-up contributions will no longer be allowed.
Why This Matters
This change could increase your taxable income during high-earning years. However, Roth contributions can grow tax-free, offering long-term benefits when withdrawing during retirement.
For workers earning $145,000 or less, catch-up contributions may remain pre-tax or Roth depending on plan options.
For business owners and plan sponsors, offering catch-up contributions going forward requires a Roth catch-up feature to be available.
What You Can Do Now
Planning ahead will help you:
- Avoid tax-season surprises
- Make informed retirement contribution decisions
- Prepare payroll and plan administration updates (for employers)
We’re Here to Help
Lanigan Ryan is ready to help you stay prepared as these retirement plan updates move closer. If you’re unsure how the mandatory Roth catch-up rule may influence your future contributions or tax outlook, we’re here to walk through the options with you.
Plan wisely, stay informed — and make sure your retirement strategy continues working in your favor.
