Roth Catch-Up Contribution Changes: 2026

Effective January 1st, 2026, a new IRS rule will require certain employees to make retirement plan catch-up contributions on a Roth (after-tax) basis. This applies to individuals age 50 or older who earned more than $150,000 in the prior year, based on 2025 FICA (Social Security) wages for the 2026 threshold. This income limit is indexed for inflation and will be updated annually. 

For impacted employees, catch-up contributions will no longer be pre-tax. While taxes are paid in the year of contribution, qualified Roth withdrawals in retirement will be tax-free. Standard pre-tax contributions are not affected; you may still contribute up to the regular IRS annual limit, which is $24,500 for 2026. Once that limit is reached, salary deferrals must shift to Roth contributions. This rule also applies to the higher “super catch-up” limits available to employees ages 60 to 63. 

For additional information, visit www.irs.gov

Proactive tax and retirement planning can have a meaningful long-term impact. We encourage you to contact your United advisor to discuss specific strategies and considerations that may apply to your situation.

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