401(k) Catch Up Contributions Are Changing in 2026: What You Need to Know

Significant changes are coming in 2026 for high earning workers who make 401(k) catch‑up contributions to their employer retirement plans. These updates, which were created under the SECURE 2.0 Act of 2022, continue a broader legislative trend that encourages the use of Roth accounts. Understanding how the rules shift from 2025 to 2026 can help you make informed decisions about your retirement strategy.

The New Rule for 401(k) Catch‑Up Contributions

Beginning in 2026, if you are age 50 or older and your FICA‑taxable wages were $150,000 or more in 2025, any catch‑up contributions you make must go into a Roth 401(k). These contributions will be made with after‑tax dollars, eliminating the upfront tax deduction that traditional catch‑up contributions previously offered.

While this change removes an immediate tax benefit, it also opens the door to the long‑term advantages of Roth accounts, most notably, tax‑free growth and tax‑free withdrawals in retirement, provided you meet the five‑year rule.

If your employer does not offer a Roth 401(k) option, you will be unable to make catch‑up contributions at all. This rule is permanent and uses a one‑year lookback, meaning your 2025 W‑2 determines your eligibility for 2026, and each subsequent year follows the same pattern.

Contribution Limits: 2025 vs. 2026

Here’s how the standard and catch‑up contribution limits change:

Contribution Type	2025	2026
Employee contribution limit	$23,500	$24,500
Age 50+ catch‑up	$7,500	$8,000
Age 60–63 special catch‑up	$11,250	$11,250
Roth requirement for catch‑ups	Not required	Required for those with 2025 FICA wages ≥ $150,000

 

Who Is Not Affected?

If your FICA‑taxable wages were below $150,000 in 2025, you can continue making catch‑up contributions to either a traditional 401(k) or a Roth 401(k), depending on what your plan offers. The new Roth‑only rule does not apply to you.

Planning Ahead

These changes may influence how you think about taxes, income timing, and long‑term retirement income planning. If the shift to Roth catch‑up contributions affects your strategy, consider reviewing your savings approach, evaluating whether Roth contributions align with your future tax expectations, or exploring additional tax‑advantaged savings vehicles.