For millions of Americans over 50 who earn more than $150,000, the start of 2026 brings a significant change to retirement planning: the new Roth catch-up contribution mandate has officially arrived.

Thanks to a provision in the SECURE 2.0 retirement legislation passed in late 2022, high-income earners who are over 50 and want to make catch-up contributions to their 401(k) or similar workplace retirement plans must now direct those contributions to the plan's Roth option rather than the traditional pre-tax account.

What's Changing

Here's the bottom line: If you earned more than $150,000 in FICA wages in the prior year and you're age 50 or older, your catch-up contributions must go into a Roth account. You can no longer choose to make catch-up contributions on a pre-tax basis.

The key numbers for 2026:

  • Standard 401(k) contribution limit: $24,500
  • Catch-up contribution (age 50+): $8,000
  • Total for age 50+: $32,500
  • Income threshold for Roth mandate: $150,000

If you earned $150,000 or more in 2025, your $8,000 catch-up contribution in 2026 must be made after-tax to a Roth account.

The Super Catch-Up: A New Opportunity

While the Roth mandate affects some savers, SECURE 2.0 also created a new benefit for those approaching retirement. The "super catch-up" provision allows workers ages 60 to 63 to contribute an additional $11,250 per year—on top of the standard $24,500 limit.

That means workers in this age range can save up to $35,750 in their 401(k) in 2026:

  • Standard limit: $24,500
  • Super catch-up (ages 60-63): $11,250
  • Total: $35,750

For high earners in this age group, the super catch-up contributions must also go to Roth accounts under the new mandate.

Why the Change Was Made

The Roth catch-up mandate was included in SECURE 2.0 primarily as a revenue measure. By requiring high earners to use Roth accounts for catch-up contributions, the government collects income taxes now rather than when funds are withdrawn in retirement.

From a policy perspective, supporters argued that high earners already benefit disproportionately from the tax deduction on traditional contributions, since they're in higher tax brackets. Requiring Roth treatment for catch-up contributions levels the playing field somewhat.

Roth vs. Traditional: A Refresher

Understanding the difference between Roth and traditional contributions is essential:

Traditional (pre-tax) contributions:

  • Reduce your taxable income in the year you contribute
  • Grow tax-deferred
  • Taxed as ordinary income when withdrawn in retirement

Roth (after-tax) contributions:

  • Made with after-tax dollars (no immediate tax benefit)
  • Grow tax-free
  • Qualified withdrawals in retirement are completely tax-free

For high earners currently in peak earning years, the shift to mandatory Roth contributions means paying taxes at today's high rates rather than deferring to potentially lower rates in retirement.

Strategies to Consider

The new rules require some retirement planning adjustments:

1. Reassess Your Overall Roth/Traditional Mix

If catch-up contributions must be Roth, consider whether your other retirement savings should shift. Some savers may want to maximize traditional contributions up to $24,500 and accept that catch-up contributions will be Roth.

2. Think About Tax Diversification

Having both traditional (pre-tax) and Roth (after-tax) retirement assets provides flexibility in retirement to manage taxable income. The mandatory Roth catch-ups may actually improve your tax diversification.

3. Consider Your Retirement Tax Bracket

If you expect to be in a significantly lower tax bracket in retirement, paying taxes now on Roth contributions may feel painful. However, if you expect continued high income or anticipate tax rates rising, Roth treatment could prove advantageous.

4. Don't Skip Catch-Up Contributions

The Roth requirement shouldn't deter you from making catch-up contributions entirely. The tax-free growth and withdrawal benefits of Roth accounts remain valuable.

What If Your Plan Doesn't Offer Roth?

Here's an important wrinkle: not all 401(k) plans offer a Roth option. If your employer's plan lacks Roth accounts, high earners simply cannot make catch-up contributions at all under the new rules.

This provision has prompted many employers to add Roth options to their plans to avoid disadvantaging older, higher-paid employees. If your plan doesn't currently offer Roth, it may be worth asking HR about adding it.

Other 2026 Retirement Changes

The Roth mandate is just one of several retirement-related changes for 2026:

  • IRA contribution limit: $7,500 (plus $1,100 catch-up for age 50+)
  • HSA limits: $4,400 individual, $8,750 family (plus $1,000 catch-up for age 55+)
  • Social Security earnings test: $24,480 threshold
  • New senior tax deduction: $6,000 for individuals 65+, $12,000 for couples

Action Items

If you're affected by the new Roth mandate:

  • Check your 2025 W-2: Verify whether your FICA wages exceeded $150,000
  • Confirm your plan offers Roth: Contact HR or your plan administrator if unsure
  • Update your contribution elections: Ensure catch-up contributions are properly directed
  • Consider the tax implications: Adjust withholding if necessary to account for reduced pre-tax savings
  • Review your overall retirement strategy: The change may warrant broader adjustments

The Roth catch-up mandate represents a meaningful shift in how high earners save for retirement. While it removes a tax deferral option many workers relied on, it also creates an opportunity to build more tax-free retirement income—a trade-off that, depending on future tax rates and your personal circumstances, could ultimately work in your favor.