From 2026, 401(k) catch-up contributions must be Roth for workers earning over $150,000 in prior year
Key points
- Starting in 2026, catch-up contributions for eligible workers must be made on a Roth basis
- The rule applies to workers age 50 or older with prior-year wages above $150,000
- The rule does not eliminate catch-up contributions or reduce the amount that can be saved
Under the SECURE 2.0 Act, starting in 2026, workers eligible for catch-up contributions, generally age 50 or older, who earned more than $150,000 in prior-year wages from the plan sponsor must make their 401(k) catch-up contributions on a Roth basis, meaning they pay income tax up front. The rule does not eliminate catch-up contributions or reduce the amount that can be saved. For reference only, not legal advice.
What employers should do
- Review 401(k) catch-up settings and confirm Roth treatment for eligible employees
- Check the list of employees with prior-year wages above $150,000 and the wage definition used
Policy details
- Jurisdiction
- Federal
- Status
- In effect
- Effective date
- —
- Employers covered
- Employers offering 401(k) plans with catch-up contributions; applies to employees with over $150,000 prior-year wages from the employer
- Official source
- View official source ↗
Original report: Newswav ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.