As the 2026 tax year closes, high earners must navigate the new mandatory Roth catch-up rule while preparing for recently announced 2027 inflation adjustments.
Mandatory Roth Catch-Ups for High Earners
Starting January 1, 2026, a significant change from the SECURE 2.0 Act takes full effect following a two-year administrative transition period. Plan participants who earned more than $145,000 in FICA wages from their employer in the preceding calendar year (2025) are now required to designate any catch-up contributions to their 401(k), 403(b), or governmental 457(b) plan as Roth (after-tax) contributions. This rule applies to those age 50 and older who wish to contribute beyond the standard deferral limit. Employers must ensure their plans support Roth contributions to allow these high-earning participants to continue making catch-up elective deferrals.
New 'Super' Catch-Up Limits for Ages 60-63
For the 2026 tax year, taxpayers who reach ages 60, 61, 62, or 63 by year-end benefit from a higher 'super' catch-up contribution limit. Under SECURE 2.0, this limit is increased to $11,250 for most 401(k) and 403(b) plans, compared to the standard $8,000 catch-up for those aged 50–59 or 64+. Combined with the 2026 base elective deferral limit of $24,500, eligible individuals in this specific age bracket can contribute a total of $35,750 to their employer-sponsored plans for the 2026 tax year.
Look Ahead: Recently Released 2027 Tax Adjustments
On November 5, 2026, the IRS released the annual inflation adjustments for the 2027 tax year. The standard deduction for married couples filing jointly will increase to $33,200 (up from $32,200 in 2026). For single taxpayers, it rises to $16,600. The top marginal tax rate remains 37%, but the threshold for this bracket will increase to $661,375 for single filers and $793,650 for joint filers in 2027. Taxpayers should review these figures now to adjust their withholding and estimated payments for the coming year.
Primary sources and further reading
- IRS announces 2027 relevant tax year 2027 annual inflation adjustments
- 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- Guidance on Roth Catch-Up Contribution Requirement
Tax rules depend on the tax year and individual circumstances. Confirm the current IRS guidance before filing.