SECURE 2.0 Update: New Catch-Up Contribution Rules for 401(k) and 403(b) Plans in 2026

What High-Income Earners and Ages 60–63 Need to Know

Big changes are coming to retirement plan catch-up contributions in 2026 under the SECURE 2.0 Act. Here’s what you need to know to stay compliant and maximize your savings.

1. Roth Requirement for Certain High-Income Earners

Starting January 1, 2026, if you are age 50 or older and your 2025 wages exceed $150,000, any catch-up contributions to your 401(k) must be made as Roth (after-tax) contributions—not pre-tax.

• Applies to: 401(k), 403(b), and governmental 457(b) plans

• Does not apply to IRAs (Traditional, Roth, SEP, SIMPLE)

• Check your 2025 W-2 (Box 3 wages) to confirm income threshold

Why This Matters: If you’ve been making pre-tax catch-up contributions, you’ll need to adjust your strategy for 2026. Roth contributions can impact your tax planning, so review your options early.

2. Extra Catch-Up Contributions for Ages 60–63

Beginning in 2026, individuals aged 60–63 can make additional catch-up contributions to workplace retirement plans.

• See below for the new catch-up limits.

• Employer must adopt this provision

2026 Contribution Limits

Account Type	Age Category	Standard Limit (2026)	Catch-up Limit (2026)	Total Limit (2026)
401(k), 403(b), 457(b)	Under 50	$24,500	N/A	$24,500
401(k), 403(b), 457(b)	Age 50–59, 64+	$24,500	$8,000	$32,500
401(k), 403(b), 457(b)	Age 60–63	$24,500	$11,250	$35,750
Traditional/Roth IRA	Age 50+	$7,500	$1,100	$8,600

Action Steps

✔ Review your 2025 income to determine Roth requirement

✔ Confirm if your employer will offer the age 60–63 extra catch-up

Need Help?

We’re here to guide you through these changes. Contact us today to review your retirement strategy.