Catch-Up Contributions Are Changing — Here’s What You Need to Know Before 2026
If you hear the term “catch-up contribution” and your mind jumps straight to ketchup and french fries, this might not be the post you expected—but stick with us! As we approach 2026, an important update from the SECURE Act 2.0 is set to impact many workers who contribute to employer-sponsored retirement plans.
If you:
Participate in a 401(k), 403(b), or 457 plan
Are age 50 or older and make catch-up contributions
And your FICA wage base for the year (Box 5 of your 2025 W-2) exceeds $145,000
…then you’ll be required to make all catch-up contributions into the Roth component of your employer plan beginning in 2026.
Why This Matters
We’re often surprised to see how many high-income earners voluntarily choose Roth contributions even when they’re in a 22% or higher tax bracket—especially since many retirees later fall into the 12% bracket when they begin drawing from their retirement accounts.
There are compelling non-tax reasons to choose Roth contributions, and in many cases, a Roth IRA is preferable to a Roth 401(k). But these new rules may shift the tax impact of your savings strategy, and it’s worth understanding how your retirement picture could change as a result.
How We Can Help
As financial advisors who also provide tax preparation services, we’re uniquely positioned to help clients evaluate the tax and retirement implications of changes like these. If you’re unsure how the new Roth catch-up rules might affect you—or what alternatives you may want to consider—reach out. We’d be happy to walk through your options.
And yes… we still think those fries could use some ketchup! 😎
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.