New for 2026: Roth Catch-Up Rules for Higher Earners
A SECURE Act 2.0 provision took effect this year, which affects some retirement savers age 50 and older. Here's what it means and what you should know.
Who's Affected
Employees age 50+ whose 2025 FICA wages exceeded $150,000.
Employees ages 60-63 eligible for “super catch-up” contributions.
Who Isn't Affected
Employees under the $150,000 wage threshold.
Employees who changed employers this year and did not contribute more than $24,500 to their 2025 employer’s plan in 2026.
Self-employed individuals without W-2 wages.
What To Do
While most employers will automatically administer these changes, if you fall into the “affected” category, it wouldn’t hurt to look at your pay stub to confirm that the deferral is being done correctly.
If you changed employers and/or aren't sure if this applies to you or not, please reach out - we are happy to help and answer any questions!
Over 50 and earned more than $150,000 last year? Here's your year-end checklist:
Check your 2025 W-2, Box 3 (Social Security wages) to confirm you're over the threshold.
Did you change employers? If so, this rule may not apply to you. Reach out and we can help confirm.
Check your 2026 payroll elections and most recent pay stub. Confirm catch-up contributions (any salary deferrals above $24,500) are coded correctly as Roth, not pre-tax.
If you need to make any changes, act before your final payroll. Contributions only count if they are made by year-end.
If you have any questions, reach out. We're happy to review your situation.
Note: If your employer's plan doesn't offer Roth contributions, affected employees generally can't make catch-up contributions at all. Confirm your plan has a Roth feature before year-end.
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This article is for general informational purposes and isn't tax or legal advice. Deadlines, limits, and rules can vary based on individual circumstances. Please reach out with any questions or consult your tax advisor to confirm what applies to your situation.
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