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This notice provides initial guidance for section 603 of the SECURE 2.0 Act, enacted in December 2022. Under that provision, starting in 2024, the new Roth catch-up contribution rule applies to an employee who participates in a 401(k), 403(b) or governmental 457(b) plan and whose prior-year Social Security wages exceeded $145,000.

For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2025.

For a traditional or Roth IRA, the annual catch-up amount in 2024 and 2025 is $1,000, which boosts your total contribution potential to IRAs to $8,000. If you participate in a 401(k) , Roth 401(k) , 403(b) , or similar workplace retirement savings plan, the catch-up opportunity is even greater: up to $7,500 a year.

The Roth 401(k) contribution limit for 2025 is $23,500 for employee contributions and $70,000 for employee and employer contributions combined. There's also a $7,500 catch-up contribution for those age 50 to 59 and 64 or older, which raises the employee limit to $31,000 for those eligible.

Significant changes to 401(k) plans are coming in 2026, and if you make age 50+ catch-up contributions, you may need to be prepared. Under SECURE Act 2.0, employees earning above a certain threshold will be required to make catch-up contributions as Roth rather than pre-tax.

For more information, see New SECURE 2.0 Super 401(k) Catch-Up Contribution for Ages 60-63. Roth contribution limits 2025 Contributions to your 401(k) generally need to be made by Dec. 31 of each ...

Understanding Catch-Up Contributions . There are annual limits to how much you can contribute to your 401(k). In 2024, for people under 50 years old, this limit is $23,000, increasing to $23,500 ...

Under the new rules, those who make $145,000 or more will have to put their catch-up contributions into a Roth 401(k), so the contributions will be made with after-tax dollars. This change was ...

Starting in 2025, SECURE 2.0 raised the catch-up contribution amount (called a super catch-up) for participants ages 60 to 63. Regular and super catch-up contributions are typically made on a pretax basis, but plan sponsors may allow participants to elect Roth instead. What’s changing under the new Roth catch-up contribution rule?

In 2023, workers 50 and older can make catch-up contributions of up to $7,500, in addition to the standard $22,500 maximum for 401(k) and other employer-provided plans. The case for Roth contributions

Plan participants must make catch-up contributions to a retirement plan via elective deferrals. Catch-up contributions must be made before the end of the plan year. ... You can make catch-up contributions to your traditional or Roth IRA up to $1,000 in 2015 - 2023. Catch-up contributions to an IRA are due by the due date of your tax return (not ...

The SECURE 2.0 updates to 401(k) catch-up contributions are straightforward but will require some planning to implement properly. ... 603 of SECURE 2.0 requires high earners (those earning over $145,000 in FICA wages, indexed for inflation) to make catch-up contributions on a Roth basis. If a plan does not offer Roth contributions, high earners ...

The IRS is offering relief on new 401(k) catch-up contribution rules for certain high earners. ... The SECURE 2.0 Roth catch-up contribution rule won’t apply to taxpayers making $144,999 or less ...

The catch-up contribution limit for 401(k) participants is $7,500 for 2024 and 2025 on top of the annual $23,500 contribution limit. The IRS allows catch-up contributions for people who also ...

Roth 401(k) catch-up contributions. The 401(k) Catch-Up Contribution Limit for 2025. Workers can defer paying income tax on as much as $23,500 on contributions to a 401(k), 403(b) and the federal ...

IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026 Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. ... If you earn more than $145,000 annually (indexed for inflation), your catch-up contributions to 401(k ...

First, catch-up-eligible participants whose wages for the prior year from the employer sponsoring the plan exceeded $145,000 (indexed) may make catch-up contributions only on a Roth basis (the ...

Those eligible can add $11,250 per year to their 401(k) accounts (up for the regular catch-up contribution of $7,500), increasing their overall annual contribution limit to $34,750. ... may be subject to a 10% federal tax penalty. Contributions to a Roth 401(k) are never tax deductible, but if certain conditions are met, distributions will be ...

The Roth mandate applies to 401(k), 403(b) and governmental 457(b) plans – but not to SIMPLE IRA plans. ... The threshold on 2025 wages for determining required Roth catch-up contributions for 2026 (when the rule becomes effective) will not be available until the end of this year. Self-employed individuals have self-employment income, not wages.