03/13/2026
Did you know that starting in 2026, if you're 50 or older with prior year wages over $150k, you must place catch-up contributions to a Roth IRA account?
That’s a big change, and here are 5 things you need to know:
1️⃣ This applies to 401(k), 403(b), 457(b) plans.
2️⃣ When catch-up contributions are put into a Roth account, you pay taxes on that money today, but qualified withdrawals and earnings can be tax-free later if requirements are met.
3️⃣ The 2026 catch-up limit is $8,000 for 50+, and a “super catch-up” limit of $11,250 may apply for ages 60 to 63 if the plan allows.
4️⃣ Regular contributions can still be elected as traditional pre-tax or Roth when a plan offers both options, while catch-up contributions may be Roth-only for those who meet the wage threshold.
5️⃣ The threshold is based on wages from the year before, specifically prior year F**A wages, so 2025 wages determine 2026 treatment.
The change eliminates what used to be a choice. For people with higher taxable income approaching retirement, this affects the approach to contribution timing and broader Roth conversion strategies.
Let’s talk if you have questions about how this could impact you. Your tax, legal, or accounting professional may also have insights.
Remember, with most retirement accounts, once you reach age 73, you must begin taking required minimum distributions. Roth accounts are the exception. Withdrawal penalties may apply if you take the money before age 59½. Roth IRA distributions must meet a 5-year holding requirement and occur after the account holder reaches age 59½.
