The SECURE 2.0 Act Catch-Up Contribution Changes: What’s New for 2026

As a financial adviser offering comprehensive planning, we’re always looking for ways clients can maximize their retirement savings, especially during peak earning years.

The SECURE 2.0 Act continues to roll out major updates that impact how much (and how) you can contribute to employer retirement plans.

Two provisions now matter most for savers aged 50 and older:

1. Enhanced “super catch-up contributions” for ages 60–63 beginning in 2025
2. A new requirement beginning in 2026 that higher-income earners make catch-up contributions to Roth accounts

Both changes can meaningfully shape your tax strategy and long-term retirement planning. Here’s what you need to know.

What Are Catch-Up Contributions?

If you’re age 50 or older, you can contribute extra to your workplace retirement plan — like a 401(k), 403(b), or 457(b), beyond the standard IRS limit.

For 2026, the standard contribution limit is $24,500, and the age 50+ catch-up limit is $8,000, for a total potential contribution of $32,500.

Catch-up contributions are optional, but for many clients they’re an essential tool to accelerate savings as retirement gets closer — especially if earlier years didn’t allow for maximum contributions.

Enhanced “Super Catch-Up” Rules for Ages 60–63

Beginning in 2025, The SECURE 2.0 Act introduced a special, higher catch-up contribution for individuals aged 60, 61, 62, or 63.

Here’s what it means:

• You may contribute an additional $11,250 (instead of the standard $7,500 catch-up).
• Combined with the regular contribution limit, your total possible contribution for 2026 could reach $35,750.

These enhanced limits apply to employer plans that already allow catch-up contributions (including 401(k)s, 403(b)s, and 457(b)s).

Important:
Employers are not required to adopt this feature. Each plan sponsor can decide whether to implement the enhanced catch-up option — so be sure to check with your HR or benefits team.

Once you reach age 64, you revert to the standard (lower) age 50+ catch-up limit.

New for 2026: Roth-Only Catch-Up Contributions for Higher Earners

A second provision of The SECURE 2.0 Act will affect many savers — and it begins in 2026, following a two-year IRS delay.

Starting in 2026:

• If your wages exceeded $145,000 (indexed for inflation) in the prior year,
• All catch-up contributions must be made to a Roth 401(k) (or Roth 403(b)/Roth 457(b)).

This means:

• Contributions are after-tax
• Contributions will not reduce your taxable income
• But all growth while in the 401k and future qualified withdrawals will be tax-free

Originally slated for 2024, this rule was postponed to give employers time to add Roth features. The delay means that through the end of 2025, all savers age 50+ — regardless of income — can continue making pre-tax catch-up contributions.

What if your plan doesn’t offer a Roth 401(k)?

In 2026, any plan that offers catch-up contributions must offer a Roth option.
If yours does not already, your employer will need to add one.

Alternative Ways to Save if You Want Roth Exposure (or if Your Plan Isn’t Ready Yet)

Whether you earn above or below the $145,000 threshold, you may want to intentionally diversify between pre-tax and after-tax retirement savings.

Here are additional options:

1. Contribute to a Roth IRA

If your income is below the IRS phase-out ranges, you can contribute to a Roth IRA.
For savers age 50+, the limit for 2024 and 2025 is $8,000.

Beginning in 2024, Roth IRA catch-up limits adjust annually for inflation.

2. Consider a Backdoor Roth Conversion

If your income exceeds Roth IRA limits, a backdoor Roth strategy may allow you to move after-tax contributions into a Roth IRA.

This technique is legal but nuanced. The IRS’s pro-rata rule often makes conversions partly taxable if you hold other traditional IRAs. A tax professional can help you determine whether this approach fits your situation.

3. Don’t Overlook Your Taxable Brokerage Account

Taxable accounts can be highly strategic savings vehicles:

• Long-term capital gains rates are often lower than ordinary income tax
• Qualified dividends may receive favorable tax treatment
• Municipal bonds can offer tax-advantaged income
• Tax-loss harvesting can help offset gains
• There are no contribution, income, or withdrawal restrictions

For individuals with high savings capacity, taxable brokerage accounts often serve as a flexible complement to retirement plans.

Why These Changes Matter

These provisions can meaningfully influence both how much you save and how you approach tax planning over the next several years.

How to Prepare Now

Here’s how to get ready for the changes ahead:

1. Talk to Your Employer: Confirm whether your retirement plan will implement the enhanced catch-up contribution option.
2. Review Your Finances: Make sure you’re contributing the maximum allowed now so you’re ready to take full advantage of the super catch-up limits.
3. Plan Strategically: Work with a financial adviser (like us!) to integrate these changes into your overall retirement strategy, ensuring you’re making the most of this opportunity.

The Bottom Line

The SECURE 2.0 Act’s catch-up contribution changes offer a mix of new opportunities and new requirements. If you’re in your early 60s, 2025 gives you a powerful chance to boost your contributions. And beginning in 2026, higher earners will need to rethink their tax strategy as catch-up dollars shift to Roth accounts.

Navigating these rules can feel complex, but you don’t have to do it alone.

Have questions about how these changes apply to you?

Schedule a free retirement consultation — we’re here to help you make the most of these new rules and stay on track for your long-term goals.

Although the firm does not charge a fee for the initial consultation, it is intended to result in the attendee establishing an advisory relationship with the firm.