Roth Catch-Up Contributions Coming in 2026

For employer retirement savings plan participants age 50 and older, catch up contributions are nearly 25 years old. 

Thanks to the SECURE Act 2.0, catch up contributions grew to allow employees age 60 to 63 to contribute even more via something called a "super catch-up." In 2025, the standard plan contribution limit is $23,500. Participants age 50 to 59 and 64+ in 2025 can contribute an additional $7,500, and now workers age 60 to 63 can contribute an additional $11,250.

SECURE 2.0 also included a provision requiring catch-up contributions to be made on a Roth, not pretax, basis for certain high-earning employees. These mandatory Roth catch-ups, will begin in 2026.

The big picture

Most employer sponsored retirement plans allow employees to make contributions on both a pre-tax and after-tax basis. Pre-tax contributions reduce taxable income and Roth contributions allow participants to build tax-free savings for the future. Pre-tax contributions help high income earners save on tax cost.

Pre-tax contributions also reduce tax revenue for the federal government. That could explain why SECURE 2.0 requires catch-up contributions for workers earning more than $145,000 to be made on a Roth, not pre-tax, basis.

To determine whether an employee exceeds the $145,000 threshold, employers will use FICA wages listed in box 3 of the employee's W-2 from the previous year. In other words, to for tax year 2026, employers will use 2025 W-2 forms. The limitation does not apply to any plan participants who do not have prior-year W-2 wages, such as the self-employed.

Plans that do not offer Roth contributions either must add a Roth feature or cannot allow high earners to make catch-up contributions.

This new Roth catch up contribution will provide the benefit of the opportunity to accumulate more tax free savings to use in retirement.

It will also eliminate a tax deduction for any taxpayers who typically max out their pre-tax contributions.

To learn more about what this means for your tax and retirement planning, contact MNM Vested, LLC.