Effective January 1, 2026, there is a new Roth Catch-Up Requirement for Americans. In the under 5-minute video above, our advisor, Gina Buchholz, explains the requirement and everything you need to know.
Roth Catch-Up Requirement
On December 29, 2022, the SECURE 2.0 Act was signed into law
Provides significant changes to improve retirement readiness for all Americans
One key revenue driver is the Roth Catch-Up Requirement
Originally effective in 2024, it was delayed and now effective in 2026
What is Roth Catch-Up?
Starting in 2026, the new legislation will apply to:
Employees turning age 50 or older AND
Those who’ve earned more than $150,000 in FICA wages in the previous year (2025)
These employees must contribute any and all of the “catch-up” amount as a Roth after-tax contribution.
FICA wages can be found on Form W-2, Box 3. Wage limits may be indexed annually.
2026 IRS Limits for 401(k) Contributions
$24,500 Salary Deferral Contribution
Up from $23,500 in 2025
Applies to 401(k), 403(b), most 457 plans, and the Thrift Savings Plan
$8,000 Catch-Up Contribution limit for those over age 50
Up from $7,500 in 2025
An additional amount that individuals age 50 and older can contribute
$11,250 Super Catch-Up Contribution limit for those ages 60-63
This value did not change from 2025
This “Super” Catch-Up limit is a higher catch-up limit applies to participants ages 60, 61, 62, and 63, as provisioned by the SECURE 2.0 Act.
What Do I Need to Know?
Your 401(k) vendor, payroll provider, and HR team are diligently working together to ensure compliance with the new regulation
Understand and monitor your 401(k) contributions for compliance, too
Talk to your financial or tax advisor about how the new Roth Catch-Up Requirement may impact your retirement savings strategy
Reach out to the 401k Plan Professional Team if you have any questions! You may use the button below.