New limits on retirement benefits for workers 50+

"Higher-income workers who earn more than $145,000 must now put their catch-up contributions into a Roth 401(k), meaning that they'll pay taxes now rather than later in retirement. The rules generally apply to contributions beginning in 2027, but some plans can implement them earlier. The $145,000 income threshold is based on prior-year wages and applies separately at each employer. New hires and self-employed workers without W-2 wages are exempt."

"The SECURE 2.0 Act raises the limit for those ages 60 to 63 with a super catch-up of up to $11,250. Regular and catch-up limits generally rise with inflation, although the super catch-up is expected to stay the same. The final regulations also guide plan administrators to implement and comply with the new Roth catch-up rule. The rules also cover multiple jobs, government and union plans, as well as plans in Puerto Rico."

Higher-income workers with prior-year wages above $145,000 must direct catch-up contributions into Roth 401(k)s, triggering tax payment now rather than at withdrawal. The rule generally applies to contributions beginning in 2027, although some plans may adopt it earlier, and the $145,000 threshold applies separately at each employer. New hires and self-employed people without W-2 wages are exempt. Workers 50 and older can contribute extra catch-up amounts above standard limits, and the SECURE 2.0 Act creates a super catch-up for ages 60–63 up to $11,250. Regular limits typically rise with inflation. Plans without a Roth option will block catch-up contributions.

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