For the 2026 tax year, retirement plan participants face new requirements for catch-up contributions, including a mandatory Roth designation for high-income earners and enhanced limits for those aged 60 to 63.
Mandatory Roth Designation for High-Income Earners
Beginning in the 2026 tax year, catch-up contributions to qualified retirement plans—such as 401(k), 403(b), and 457(b) plans—must be designated as Roth (after-tax) contributions for participants whose prior-year wages exceeded $145,000 (as adjusted for inflation). This requirement follows the conclusion of a two-year administrative transition period provided by the IRS to allow plan sponsors time to implement the necessary payroll and plan systems. If a participant meets this income threshold, any catch-up contributions not designated as Roth will be considered ineligible.
Enhanced 'Super' Catch-Up Limits for Ages 60–63
A significant provision of the SECURE 2.0 Act is now fully effective for the 2026 tax year, offering a higher catch-up contribution limit for participants who attain age 60, 61, 62, or 63 during the year. For 401(k) and similar employer-sponsored plans, this enhanced limit is the greater of $10,000 or 150% of the regular catch-up limit for 2025. For 2026, this allows eligible individuals to contribute up to $11,250 in catch-up deferrals, compared to the standard $7,500 catch-up for those aged 50–59. Note that these enhanced amounts revert to the standard catch-up limit once the participant reaches age 64.
Primary sources and further reading
- IRS Notice 2023-62: Guidance on Section 603 of the SECURE 2.0 Act
- IRS Notice 2024-2: Miscellaneous Changes under the SECURE 2.0 Act of 2022
Tax rules depend on the tax year and individual circumstances. Confirm the current IRS guidance before filing.