New 401(k) Catch-Up Rules for 2025 & 2026: What You Need to Know

If you’re over 50, you may already know about catch-up contributions — the extra amount you’re allowed to put into your 401k on top of the standard limit. These contributions were designed to give people closer to retirement a chance to supercharge their savings when it matters most.

But thanks to the SECURE 2.0 Act, the 401k rules are evolving in two big waves — first in 2025, and then again in 2026. The 2025 changes bring a new opportunity for certain savers, while the 2026 changes will reshape how many higher-income workers contribute. Let’s break it down.

2025 “Super Catch-Up” Contribution Rules for Ages 60–63

If you’re between the ages of 60 and 63, you’ll get an extra boost starting in 2025. Instead of the standard catch-up amount of $7,500* for those age 50+, you’ll be able to contribute 150% of that figure. That means your super catch-up contribution will jump to $11,250. (*In 2026, the catch-up contribution for those age 50+ will increase to $8,000.)

This “last push” window is designed to help people approaching retirement to maximize their savings before they stop working.

2026 Roth-Only Catch-Up Rule: What High Earners Must Know

First, for everyone the standard 401k contribution limit increases $1,000 to $24,500 and the catch-up contribution for those age 50+ increases to $8,000 in 2026. But starting in 2026, it’s not just about how much you can contribute — it’s about how you can contribute.

Here’s the key change:

• If your wages from your employer were $145,000 or less in the prior year (2025) → you can still choose between pre-tax or Roth for your catch-up and super catch-up contributions.

• If your wages were over $145,000 → you’ll no longer have a choice. All catch-up and super catch-up contributions must go into a Roth 401k.

  
  

📌 Note:

• The $145,000 threshold is indexed to inflation, so it will rise over time. The IRS will update it to reflect cost-of-living changes.

• In this context, your wages refer to Federal Insurance Contributions Act (FICA) wages from your employer. That includes earned income like wages, salaries, tips, and self-employment income. It does not include unearned income like investment income.

How the Income Threshold Affects Married Couples

You will be glad to know that the Roth-Only Catch-Up rule for high earners applies to individual wages, not household income. So even if you and your spouse file jointly, each of you is tested separately based on your own employer’s wages, not your combined income.

New 401k & IRA Limit Increase in 2026

While this post is primarily about Super Catch-Up contribution changes, there are some other changes that you'll be glad to know. For 2026, the standard 401k contribution limit will increase $1,000 to $24,500 and the standard IRA contribution limit will increase $500 to $7,500.

Why These 401(k) Changes Matter for Your Retirement Strategy

For many savers, these updates are more than just tax technicalities — they shift how you plan, save, and pay taxes.

Traditional vs. Roth 401(k): Pros and Cons Under the New Rules

If you’re used to lowering your taxable income each year with pre-tax catch-ups, being forced into Roth may feel like paying more tax today without an immediate benefit. But others see it as a strategic tax diversification move — prepaying taxes now to enjoy more flexibility and potentially tax-free income later.

4 Action Steps to Prepare for the New 401(k) Catch-Up Rules for 2025 & 2026

☑️ Check Your Wages

The $145,000 threshold (inflation-adjusted) is based on your prior-year employer wages, not household income. Review your 2024–2025 income to see where you’ll fall relative to the $145,000 threshold.

☑️ Check Your 401k Plan

Not all 401k plans currently offer a Roth option. Employers will need to add one before 2026 if they want high-income workers to keep making catch-up contributions. Check in with your HR department to find out the company plans to incorporate the new changes.

☑️ Plan Ahead with Your Advisor

Discuss with your financial advisor whether it makes sense to start shifting your savings mix now and how to prepare for impacts to your tax planning. Based on these new changes, you may need to tweak your savings and tax planning strategy.

☑️ Stay Tuned

Keep an eye on IRS updates to the income threshold and contribution limits each year, particularly since it is indexed to inflation.

Timeline of SECURE 2.0 Catch-Up Changes

FAQs: 401(k) Catch-Up Rules for 2025 & 2026

Q: WHAT IS THE MAXIMUM I CAN CONTRIBUTE IF I'M 60 IN 2025 AND HOW WILL THAT CHANGE IN 2026?

A: In 2025, you can contribute up to the standard 401k limit of $23,500 plus $11,250 super catch-up contributions for a grand total of $34,750.

In 2026, you'll be able to contribute $1000 more because the standard 401k limit increases to $24,500. So the standard $24,500 + $11,250 super catch-up allows you a maximum contribution of $35,750 in 2026.

Q: DOES THE ROTH-ONLY RULE FOR HIGH INCOME EARNERS APPLY TO STANDARD 401K CONTRIBUTIONS? A: No. The rule only applies to high income earners' catch-up or super catch-up contributions, not their standard contributions.

Q: DOES THE ROTH-ONLY RULE APPLY TO IRAs?

A: No. The Roth-only rule applies to employer plans like 401(k), 403(b), and 457(b) — not IRAs.

Q: WHAT IF MY EMPLOYER DOESN'T OFFER A ROTH 401K?

A: They’ll need to update their plan by 2026, or high earners won’t be able to make catch-up contributions.

Q: HOW DO THESE CHANGES AFFECT REQUIRED MINIMUM DISTRIBUTIONS (RMDs)?

A: Roth 401k contributions are now exempt from RMDs starting in 2024, aligning with Roth IRAs.

Final Thoughts: Preparing for the Future of 401(k) Catch-Up Contributions

Catch-up -- and now super catch-up -- contributions are a powerful way to boost retirement savings. But starting in 2026, higher-income earners will only be able to make those contributions on a Roth basis — meaning paying more tax today for potential tax-free withdrawals tomorrow. Be sure to plan ahead so the new 401k catch--up rules for 2025 & 2026 don’t catch you off guard, particularly since they have tax implications. You can get additional information on the IRS website here.

Talk with an Advisor About Adapting Your Retirement Strategy

If you have an IRA, brokerage account, or old 401k and you’d like to discuss an investment strategy that can adapt to these new rules and all market conditions, call me or schedule a meeting today. Better planning and smarter investing are key to great results!

Sincerely,