Big Changes Coming for 401(k) Catch-Up Contributions!
Are you 50+ and earning more than $150,000 in FICA wages? A new rule under SECURE 2.0 could impact how you save for retirement.
Starting in 2026, catch-up contributions for highly paid individuals (HPIs) will need to be made as Roth (after-tax) dollars. This rule applies only to catch-up contributions. Regular 401(k) deferrals can still be made pre-tax.
Each employer will handle it differently. Some will automatically deem catch-up contributions for HPIs as Roth, while others may stop them until the participant re-elects their catch-up contribution as a Roth contribution. Human resources or payroll teams can help employees understand how their retirement plan will implement this rule.
Plan ahead. Stay informed. Secure your future.
The information provided in this blog post is for informational purposes only and should not be considered as financial, legal, or professional advice. Always consult with a qualified professional for specific advice tailored to your individual circumstances.
