Roth Catch-Up Rule Effective 2026 - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- 8 hours ago
- 1 min read
Roth Catch-Up Rule Effective 2026
Effective: January 1, 2026
Originally passed under the SECURE 2.0 Act of 2022, the long-delayed Roth-only catch-up contribution rule takes effect January 1, 2026.
Employees age 50 and older who earned more than $145,000 in Social Security wages (Box 3) from their employer in the prior year must make any catch-up contributions on a Roth (after-tax) basis. Those below the threshold may continue to make traditional pre-tax catch-ups.
What Employers Should Know:
The rule applies to 401(k), 403(b), and 457(b) plans.
If your plan does not offer a Roth option, high earners will be unable to make catch-up contributions in 2026.
isolved is fully prepared for this update beginning January 1, 2026; no action is required from clients at this time.
Employers should still confirm their plan allows Roth contributions and communicate the upcoming change to employees who make catch-ups.
Get day-to-day updates on Roth Catch-Up Rule Effective 2026 visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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