Two SECURE 2.0 rules are reshaping how clients over 50 save in 2026. One forces higher earners’ catch-up contributions into Roth accounts. The other lets savers aged 60 to 63 contribute more than anyone else.
They interact, and clients are confused. Here’s what new planners need to know.
2026 contribution limits
| Account | Base limit | Catch-up, age 50+ | Catch-up, ages 60–63 |
|---|---|---|---|
| 401(k), 403(b), governmental 457(b) | $24,500 | $8,000 | $11,250 |
| SIMPLE IRA | $17,000 | $4,000 | $5,250 |
| Traditional and Roth IRA | $7,500 | $1,100 | — |
At ages 60 to 63, a 401(k) participant can defer up to $35,750 in 2026 ($24,500 + $11,250).
Rule 1: Catch-ups for high earners must be Roth
If a participant earned more than $150,000 in FICA wages from their employer in 2025, any catch-up contributions they make in 2026 must be Roth (after-tax). Their regular deferrals up to $24,500 can still be pre-tax.
Key details:
- The test uses last year’s wages from the same employer (Social Security wages, Box 3 of the W-2). A new hire with no wages from that employer last year isn’t subject to it.
- It applies to employer plans, not IRAs. IRA catch-ups are unaffected.
- No Roth option, no catch-up. A plan without Roth deferrals can’t accept catch-ups from affected employees. Many employers added Roth options for this reason.
- Timing: The requirement took effect January 1, 2026. Final IRS regulations apply from 2027, and plans can follow a reasonable, good-faith interpretation in 2026.
Rule 2: The age 60–63 super catch-up
Participants who are 60, 61, 62 or 63 at the end of the year can make a larger catch-up: $11,250 in a 401(k) instead of $8,000. At 64, they drop back to the regular $8,000 catch-up.
The super catch-up is optional for employers. Plans may offer it, so check the plan document before building it into a client’s savings plan.
Two examples
Linda, 61, earned $180,000 in 2025. She can defer $35,750 in 2026. Her first $24,500 can be pre-tax, but her $11,250 catch-up must go to Roth because her prior-year wages topped $150,000. In the 32% bracket, that means about $3,600 more tax this year than a pre-tax catch-up, in exchange for tax-free withdrawals later.
Tom, 52, earned $140,000 in 2025. He’s under the wage threshold, so his full $8,000 catch-up can be pre-tax or Roth, his choice. He isn’t eligible for the super catch-up until the year he turns 60.
Planning conversations to have now
- Check paychecks in January. Make sure high earners’ catch-ups are being treated as Roth, and that withholding accounts for the extra taxable income.
- Reframe the Roth “penalty.” For many clients, forced Roth savings diversifies their tax exposure in retirement and reduces future required minimum distributions.
- Coordinate with a spouse. If one spouse is subject to the rule and the other isn’t, the non-affected spouse can carry more of the household’s pre-tax savings.
- Use the 60–63 window. Four years of super catch-ups can add $13,000 more than regular catch-ups ($3,250 × 4). For late savers, that’s meaningful.
On the CFP® exam
Retirement Savings and Income Planning is the largest domain on the CFP® exam at 18%. Whether or not a given limit appears in the exam’s reference materials, you need to know the rules: who’s subject, which accounts, and which ages.
Practice retirement questions with PlannerPrep
PlannerPrep’s question bank includes hundreds of retirement planning questions with a detailed rationale for every answer, and it tracks your results by topic. [View membership plans] or try our [free retirement practice questions].
This post is general education, not tax advice. Limits are for 2026.
Sources: Mercer Advisors – 2026 Retirement Plan Contribution Limits and Catch-Up Rules · IRS – Treasury, IRS Issue Final Regulations on New Roth Catch-Up Rule · Quarles – Roth Catch-Up Contributions in 2026