"Thanks to a provision in the Secure 2.0 retirement legislation, high-income earners (with $150,000 or more in FICA income in the prior year) who are over 50 and investing in 401(k) or other company retirement plans must make catch-up contributions to their plans' Roth option, rather than traditional tax-deferred contributions, starting this year."
"For 2026, 401(k) investors under 50 can contribute $24,500 to their company plans, plus $8,000 in catch-up contributions if they're over 50, for a total of $32,500. In addition, people age 60 to 63 can make "super-catch-up" contributions: $11,250 on top of $24,500."
"Potential Action Items: Some 401(k) plans may not have a Roth option, so those participants should instead consider making a full IRA contribution in addition to their baseline 401(k) contributions ($24,500).This year, the IRA contribution limit is $8,600 for people over 50and $7,500 for those under 50. If you can invest even more than that, steer the overage to a taxable brokerage account."
Secure 2.0 requires high-income earners (with $150,000 or more in FICA income in the prior year) over age 50 to direct catch-up contributions into company plan Roth options instead of traditional tax-deferred accounts. For 2026, the base 401(k) limit is $24,500, with an $8,000 catch-up for those over 50 (total $32,500) and a $11,250 super-catch-up for ages 60–63. Participants whose plans lack a Roth option can contribute to a full IRA in addition to the baseline 401(k). IRA limits are $8,600 for those over 50 and $7,500 for those under 50. OBBBA raised the SALT deduction cap above $10,000.
Read at Fast Company
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