Why Do I Have to Make Roth Catch-Up Contributions in 2026?

The short answer: Congress changed the rules.

Starting in 2026, some employees who make catch-up contributions to their 401(k) will have to make those contributions as Roth contributions instead of pre-tax contributions.

But don’t panic.

This does NOT mean your entire 401(k) is becoming Roth.

In fact, many people will see little to no change.

Who does this affect?

The new rule only applies if all three of these statements are true:

• You are 50 or older.
• You choose to make catch-up contributions.
• You earned more than $150,000  in the previous year (this amount will be indexed annually).

If all three apply to you, your catch-up contributions must be Roth.

Your regular 401(k) contributions can still be pre-tax.

Why did Congress make this change?

The answer is actually pretty simple.

Congress passed a law called SECURE 2.0 to make several improvements to retirement plans.

To help pay for those improvements, Congress decided to collect tax dollars sooner.

Here’s the difference:

Pre-tax contributions

• Lower your taxable income today.
• You pay taxes later when you withdraw the money.

Roth contributions

• Do not lower your taxable income today.
• You pay taxes now.
• Qualified withdrawals in retirement may be tax-free*.

By requiring certain catch-up contributions to be Roth, the government receives tax revenue sooner.

	Pre-Tax 401(k)	Roth 401(k)
Contributions	Not taxed; lowers your taxable income now	Taxed now, but grow tax-free*
Withdrawals	Taxed in retirement	Tax-free if qualified*

*Tax-free withdrawals from a Roth account are generally available if the account has been held for at least five years and the account holder has reached age 59½, whichever occurs later. Additional conditions may apply. Consult a qualified tax professional for guidance specific to your situation.

The biggest misunderstanding

Many people think:

“I can no longer contribute to a traditional 401(k).”

That is not true. Think of your 401(k) as two separate buckets.

Bucket #1: Regular 401(k) contributions

These can still be pre-tax.

Bucket #2: Catch-up contributions

These may have to be Roth if you meet the income requirements.

That’s it.

Only the second bucket changed.

2026 401(k) Contribution & Catch‑Up Limits

Here’s an example.

Let’s say Jennifer is:

• 54 years old
• Earned $165,000 last year
• Wants to maximize her retirement savings

Jennifer can still make her regular 401(k) contributions as pre-tax.

However, her catch-up contributions must be Roth.

What should you do next?

Don’t let this new rule create unnecessary stress.

Instead:

• Review your prior-year wages.
• Check your contribution elections.
• Talk with your HR team or retirement plan advisor.
• Understand how Roth contributions may affect your taxes.

Most importantly, don’t stop saving for retirement because the rules changed.

The Takeaway: This Is a Small Change, Not a Major Overhaul

If you’ve been worried that pre-tax 401(k) contributions are going away, you can stop worrying.

This new rule only affects a specific group of employees who are age 50 or older, earn above the income threshold, and choose to make catch-up contributions.

For everyone else, very little changes.

The biggest challenge isn’t the rule itself – it’s the confusion surrounding it.

Once you understand that only certain catch-up contributions may need to be Roth, the change becomes much easier to understand.

The goal isn’t to memorize every retirement rule. The goal is to understand how the rule applies to you so you can continue saving for retirement with confidence.

Disclaimer: This material is for general informational purposes only and is not intended to provide legal or tax advice.