New for 2026: Earn Over $150,000 and Your 401(k) Catch-Up Money Now Goes In as Roth, Whether You Like It or Not.

Starting in 2026, workers 50 or older who earned more than $150,000 in 2025 Social Security wages will see all 401(k) catch-up contributions automatically go into Roth accounts, regardless of personal preference. This mandatory switch costs affected workers $1,900 to $2,700 annually, depending on age and contribution amount. Employers offering no Roth option will completely lose catch-up contributions, making it crucial to verify plan details.

Financial advisors, often salespeople, should be chosen based on fiduciary status, which legally puts the client's interests first. The SECURE 2.0 rule took effect on January 1, altering how high-earning retirees save for retirement. If 50 or older and earned over $150,000 in Social Security wages in 2025, catch-up contributions must now be in Roth accounts.

The threshold was $145,000 previously but increased for inflation to $150,000 in 2026. The impact on take-home pay is noticeable, reducing the 24% federal tax bracket by about $1,900 for a 55-year-old and $2,700 for a 62-year-old using the super catch-up. Most Americans don't know their retirement readiness. Advisor.com's free tool matches users with vetted fiduciary advisors in under three minutes to help with retirement planning.