IR-2023-155, Aug. 25, 2023 — Today, the IRS announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher income participants in 401 (k) and similar retirement plans must be designated as after-tax Roth contributions.
Catch-Up Contribution Changes Tax Code Section 414 (v) permits (but does not require) retirement plans to allow employees in 401 (k), 403 (b) and governmental 457 (b) plans who are age 50 or older to make additional “catch up” contributions ($7,500 in 2025) that are in addition to regular salary deferral contributions.
On January 10, 2025, the Treasury Department and the IRS issued proposed regulations providing guidance on the 401 (k) catch-up contributions updated by SECURE 2.0. Significant changes include increased catch-up limits for those aged 60 to 63 and mandatory Roth contributions for high earners making more than $145,000.
For those 50+ and earning more than $145,000 annually, 2026 will bring significant changes to making catch-up contributions to your 401(k).
Catch-Up Rules for 2026 Any contribution limits – catch-up or otherwise – for 401 (k) plans in 2025 are the same for both pre-tax and Roth accounts. That changes in 2026. That year, catch-up contributions for 50-and-over plan users can be made into pre-tax 401 (k) accounts only by those making less than $145,000 per year.
As plan sponsors prepare for the changes to the limits for their retirement plans and the effects on their labor costs and talent recruitment and retention efforts in 2026, we offer our 2026 Internal Revenue Service (IRS) Limits Forecast.
The new rule allows these workers to contribute up to 150% of the inflation-adjusted catch-up limits for individuals over age 50.
In January, the Department of the Treasury and the Internal Revenue Service issued guidance for several provisions of the SECURE 2.0 Act of 2022. This blog focuses on the proposed rule for qualified retirement plans that allows participants who have reached age 50 to make catch-up contributions and increased catch-up limits for participants who have reached ages 60-63.
For example, the catch-up limit for those 50+ for 2024 was $7,500. So, the IRS has announced that for 2025, the enhanced catch-up contribution limit for those 60-63 is $11,250.
Explore this handy chart, which shows the 2025 benefits plan limits and thresholds for 401(k) plans, health savings accounts, flexible spending accounts, and more.
Big changes are coming for 401 (k) retirement plan contributions in 2025 and 2026. These updates, straight from the SECURE Act 2.0, offer new options to help certain participants save more. Here’s what’s new:Super Catch-Up: Starting on January 1, 2025, participants who are age 60, 61, 62, and -63 can save even more for retirement.
The SECURE 2.0 Act makes major changes to 401(k), IRA, Roth, and other retirement savings plans. Here's what you need to know.
In the event of rising tax rates or entering a higher tax bracket during retirement, this approach can lead to substantial savings over time. Preparation Time Until 2026 Originally slated to take effect at the beginning of 2024, the new 401 (k) catch-up rules have been postponed by the IRS.
In 2026, mandatory Roth catch-up contributions for high earners will be effective. It requires that participants at least 50 years old whose prior-year Social Security wages exceeding $145,000 from an employer sponsoring the plan make catch-up contributions to a Roth account, rather than a pre-tax account.
That would be twice the $500 increase savers saw in 2025.
