2026 brings changes to your 401(k) catch up contributions that you need to know about. Ignoring them could bring IRS hassles or a surprise tax bill.
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If you are participating in your 401(k) at work, you have likely received a confusing email telling you about changes to your 401(k) catch-up contributions. If you aren’t close to age 50, this probably doesn’t mean much to you right now. If happen to be near the age of 50 or wiser (aka older), then you should keep reading for information that could affect the taxation of your 401(k) catch-up contributions in 2026 and beyond.
I’ve received many questions from retirement savers about changes to catch-up contributions. This article explains the changes. If you have more questions, contact your certified financial planning professional to stay on track for a wealthier retirement.
What Are 401(k) Catch-Up Contributions?
401(k) catch-up contributions are an expansion of the amount an employee is allowed to contribute to their 401(k) plan each year. If you’re age 50 or older, you are eligible to make additional contributions to your 401(k). There are even “super” catch-up contributions for those specifically aged 60-63.
Hopefully, by the time you reach 50, you will have started thinking seriously about a retirement plan. Your 401(k) catch-up contributions let you save more than the annual contribution limit, with various tax benefits to make the process easier.
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What Is The “Super” Catch-up Contribution?
The super 401(k) catch-up contribution, via the SECURE 2.0 Act of 2022, is an additional catch-up contribution amount that’s available to you if you’re age 60 to 63 and are enrolled in a participating 401(k) retirement plan.
To be eligible to make a super-catch-up contribution, you must be age 60, 61, 62, or 63 by the end of the calendar year. You could potentially make this extra contribution over four tax years.
How Do 401(k) Catch-Up Contributions Work?
To make catch-up or super catch-up contributions, you must meet the following requirement: you must be age 50 or older (age 60 to 63 for super catch-up contributions) by December 31 to qualify for catch-up contributions, as eligibility begins the year you turn 50. As long as you turn 50 by December 31 of a given year, you will be eligible to make a catch-up contribution.
What Has Changed For 2026 Catch-Up Contributions
In 2026, 401(k) deferral limits rise. Employees can defer up to $24,500. For those 50 and older, the catch-up amount increases to $8,000. If you earned above a set threshold last year, your catch-up contributions must be made to a Roth 401(k). You’ll pay tax now but get tax-free growth and withdrawals later.
The New 401(k) Income Threshold And Employer Implications
This rule uses only your prior-year wages from your current employer. The threshold is $150,000 in 2025. If a Roth option is not available through your employer, catch-up contributions may not be possible unless your employer updates the plan.
What This Means For Your 401(k) Catch Up Contributions
If you’re under the threshold. You retain the choice to make catch‑up contributions pre‑tax or Roth (subject to plan options).
If you earn above the threshold. Your catch-up contributions will be made in a Roth account and are after-tax. You lose an immediate deduction, but your growth and withdrawals will be tax-free. Check with your employer to make sure these are processed properly, especially if you’ve changed jobs or have multiple employers.
If your employer lacks a Roth option. You may lose catch‑up ability unless the plan is amended to add Roth features. If a Roth option is not offered by your employer, you may not be able to make catch-up contributions unless the plan is updated.
Practical Steps To Take Now
1. Check your 2025 wages and estimate whether you’ll exceed the threshold in 2026. Your W-2 wages will be listed on Box 3 of your tax forms.
2. Confirm your plan’s Roth availability with HR or plan admin. If it’s missing, ask whether the plan will add it before 2026.
3. Revisit your tax strategy. If you’ll be forced into Roth catch‑ups, model whether paying tax now makes sense versus preserving pre‑tax deductions. Consider current vs expected retirement tax rates.
4. Maximize other tax‑efficient moves (backdoor Roth IRAs, taxable account tax‑loss harvesting, HSA contributions) if Roth catch‑ups reduce near‑term tax sheltering.
5. Consider working with a tax professional or Certified Financial Planner to determine what type or types of contributions are required or are the best fit for your specific situation.
For higher earners, the loss of pre-tax 401(k) contributions now may be painful, or at least peskily annoying. However, having some diversification of the taxation of your retirement income will be beneficial in the future. Having at least some Roth assets will help you lower your lifetime tax bill. While a big retirement income is a great problem to have, the tax bills can be quite painful, especially if you don’t have a plan to keep them to a minimum.
To get even more money into your 401(k) check out the Mega Backdoor Roth Strategy: