2026 Retirement Rule: Roth Catch-Ups for Ages 50+
- Author: Wilbert Raynor
- Posted: 2026-01-13
Beginning in 2026, SECURE 2.0 triggers a key IRS rule reshaping retirement catch-up contributions for some older workers.
It shifts where extra savings go, potentially easing future taxes but altering current deductions.
The 2026 Catch-Up Shift Explained
Catch-up contributions let workers 50+ supercharge retirement savings beyond standard limits.
In 2025, that's an extra $7,500 on top of the base amount.
Total limits stay the same—only the destination for certain catch-ups changes.
Does This Rule Apply to You?
You're impacted if:
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You're 50 or older, and
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Your prior-year wages topped $145,000.
If yes, from 2026 onward: Catch-ups must go into Roth accounts (IRS Notice 2024-2).
This covers 401(k), 403(b), 457(b), SEP IRAs, SIMPLE IRAs.
Pay taxes upfront, no pre-tax deferral on these extras.
Exempt from the Change?
No impact if:
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You earn $145,000 or less annually, or
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You're already using Roth-only catch-ups
You keep traditional (pre-tax) or Roth options.
Retirement Planning Pros and Cons
Upsides:
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Tax-free withdrawals in retirement from Roth growth
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Better control over future tax brackets and RMDs
Downsides:
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Boosted taxable income now, when budgets might be stretched
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Forgone immediate deductions
Bottom line: Savings amounts remain unlimited; timing of taxes just flips.
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