Big Changes Are Coming to Retirement Contributions in 2026
The IRS has released updated retirement plan contribution limits for 2026, and several SECURE Act 2.0 changes take effect on January 1, 2026. For high-income earners and retirees who delegate financial complexity to advisors, these updates will influence tax strategy, plan contributions, and how much you can save pre-tax vs after-tax. In classic Congressional fashion, the changes make things more complex.
A summary of these and other changes can also be found here IRS Notice 2025-67.
2026 Retirement Plan Contribution Limits
There are several categories of employee contributions; let’s take a moment to review those and related allowable amounts:
- Employee Contribution Limit: $24,500
- Catch-Up Contribution (Age 50+): $8,000
- Super Catch-Up (Age 60–63): $11,250
- Employer + Employee Contribution Limit: $72,000
- Maximum Employee Contributions: $32,500 for age 50+, and up to $35,750 for ages 60–63.
Roth Catch‑Up Requirement for High Earners
Beginning January 1, 2026, individuals earning more than $150,000 in wages from their plan sponsor will no longer be allowed to make pre‑tax catch‑up contributions. All catch-up contributions must be in Roth form. Your regular deferral can remain pre-tax or Roth, but the catch-up portion is now Roth-only. If you maximize this, for those of you between the ages of 60-63, you could put an additional $19,250 into your Roth column! Why only ages 60-63? As comedian Nate Bargatze says during his Everything Makes Perfect Sense skits, “Nobody knows.”
Planning Implications for 2026
For High Earners ($150,000 or more), expect all catch-up dollars to be Roth. There are worse things than creating tax-free wealth! For Below Threshold Earners (less than $150,000), you retain the choice of pre‑tax or Roth catch‑up. If you are a Plan Sponsor, your plan must support Roth catch-ups by 1/1/26 or no catch-up contributions will be allowed.
2026 Contribution Rules Summary Table
| Category | Income ≤ $150,000 (wages) | Income > $150,000 (wages) |
| Employee Deferral Limit (2026) | $24,500 | $24,500 |
| Catch-Up Contribution (Age 50+) | $8,000 (pre-tax or Roth) | $8,000 (Roth only) |
| “Super” Catch-Up (Age 60–63) | $11,250 (pre-tax or Roth) | $11,250 (Roth only) |
| Max Employee Contribution (Age 50+) | $32,500 | $32,500 (catch-up is Roth-only) |
| Max Employee Contribution (Age 60–63) | $35,750 | $35,750 (catch-up is Roth-only) |
| Total Annual Additions Limit | $72,000 | $72,000 |
| Pre-Tax Catch-Up Allowed (After 1/1/26) | Yes | No |
| Roth Catch-Up Allowed / Required | Allowed | Required |
| Plan Must Support Roth Catch-Up? | Optional | Required |
Final Thoughts
These updates reshape the tax profile of retirement contributions rather than reduce your ability to save. While high earners lose access to pre-tax catch-up contributions, increased Roth accumulation can strengthen long-term planning outcomes. As always, a proactive strategy ensures better control over taxes and retirement readiness.
If you’d like help evaluating how these changes affect your retirement strategy, connect with us to start a conversation.
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