Catch-Up Contributions Are Changing Under SECURE 2.0: Will Yours Be Forced Into Roth?

Over the last several months, we’ve had more clients ask about a quiet change coming to 401(k) catch-up contributions.

If you are age 50 or older and still working, catch-up contributions to 401(k)s are one of the best ways to boost retirement savings later in your career. The SECURE 2.0 Act didn’t take that option away, but for higher earners, it does change how catch-up contributions must be made.

Here is a walkthrough of what’s happening and what we recommend watching for.

What is a “catch-up” contribution?

What is a “catch-up” contribution?

Once you turn 50, your workplace plan typically lets you contribute an additional amount on top of the standard employee deferral limit.

For 2026, the IRS said the standard catch-up amount for most 401(k)/403(b)/governmental 457 plans increases to $8,000.

And for workers age 60–63, the SECURE 2.0 Act allows an even higher “super catch-up” amount. For 2026, that higher total catch-up is $11,250.

The big SECURE 2.0 change for higher earners

Now here is the big change: individuals who made over $150,000 in 2025 will be required to make Roth catch-up contributions.

Roth catch-up requirement (based on prior-year wages)

If your prior-year wages (FICA wages) with the employer that sponsors your 401(k) plan are above a certain threshold, then all of your catch-up contributions to that 401(k) plan must be Roth (after-tax) and not pre-tax.

For catch-ups made in 2026, the IRS announced the wage threshold (for 2025 wages) is $150,000.

Important notes about the $150,000 threshold

A few important notes:

• This is based on your wages with that employer, not household income. 
• This wage threshold is indexed for inflation, so it may increase over time.

When will this actually hit payroll?

When will this actually hit payroll?

The IRS issued final regulations in 2025 and said the rules generally apply starting in 2027, while also allowing plans to implement earlier as long as they are making a reasonable, good-faith effort to comply.

Bottom line: your company may start communicating changes in 2026, with most plans tightening the actual implementation as 2027 gets closer.

What this means in real life

What this means in real life

If you’re impacted, the change usually shows up in one of two ways:

• Catch-up contributions are treated as Roth (either because the plan requires it or payroll automatically routes catch-up dollars to Roth)
• If the plan doesn’t offer a Roth option, catch-ups may be temporarily unavailable for higher earners until the plan is updated (a potential administrative block, not something you did wrong)

Will your take-home pay change?

And yes—if your catch-up dollars switch from pre-tax to Roth, your take-home pay may slightly drop because you’re no longer getting the immediate tax deduction on that portion.

What we recommend

If you’re still working and you’re 50 or older, here are the simple next steps:

Next steps checklist

• Check your wages: If your prior-year wages were around (or above) the threshold, expect your catch-up contributions to switch from pre-tax to Roth.
• Log in to your 401(k) and see if Roth is an option (most 401(k) providers allow Roth contributions, but check with your individual provider to be sure).
• Watch your plan communications in 2026—this will likely be rolled out through HR/payroll updates.
• Coordinate the change with your tax professional. For some households, more Roth dollars are a no-brainer. For others, it may increase taxable income today, so you may want to review paycheck withholding, look at how much we convert to Roth each year, and keep an eye on Medicare IRMAA thresholds (since higher income may result in increased Medicare premiums down the road).

Final thought on Roth Catch-Ups

We don’t expect this change to be “life-altering” for most people, but it can be confusing the first time a paycheck changes or a catch-up election is rejected.

If you’re still maxing out your plan (or you’re close), this is a great moment to make sure your retirement savings strategy and tax plan are still working together.

If you’d like help confirming whether Roth catch-ups will apply to you (and what to adjust according to your near and long-term tax plan), we’re happy to walk through it with you. Just book a consultation with us below, and we will take a look together