Beginning in 2026, new rules under SECURE 2.0 will require higher-income participants in 401(k), 403(b) and 457(b) plans to make any catch-up contributions as after-tax Roth contributions. For 2026, this requirement applies to participants with 2025 Social Security wages exceeding $150,000. That threshold will be annually adjusted for inflation. No longer being able to make pretax catch-up contributions could increase affected participants’ taxable income and impact their eligibility for various tax breaks. Meanwhile, employers must update plan documents and systems to comply with the new rules by December 31, 2026. Contact us for more information.
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