Roth catch-up contributions in 2026: What’s changing and what you need to know

In my role as wealth strategist at Janus Henderson, I meet a lot of new hires. During those conversations, I always talk about what I focus on: financial planning and retirement planning. And because many of these new employees are just starting their careers, I always tell them to sign up for the company 401(k).

Here’s what’s interesting: Several times after those initial conversations, new employees have reached out to me with questions like, “How do I sign up for the 401(k)?” or “What are the steps to get to the 401(k) website?”

These are smart, capable people, but even they sometimes struggle with the mechanics of getting started. And that’s completely normal. Retirement plans can feel complicated, and there are plenty of unfamiliar terms and questions that come up for new investors.

But it’s not only young people just starting out who can feel overwhelmed. Since the new Roth catch-up rule went into effect at the start of the new year, a lot of plan participants – especially those aged 50 and older – suddenly have a lot of questions about their catch-up contributions. I’m sharing this update now to help provide some clarity and ease the transition.

What’s changing for retirement plan participants in 2026?

Starting January 1, 2026, if you’re aged 50 or older and earned more than $150,000 in Social Security wages in 2025 (box 3 on your W-2 statement), any catch-up contributions you make must go into the Roth 401(k) portion of your plan.

Here’s what that means in numbers:

• The standard catch-up limit for 2026 is $8,000.
• If you’re between 60 and 63, you can make an additional “super catch-up” contribution of up to $11,250.

This change applies to 401(k), 403(b), Governmental 457(b), and 401(a) plans. So, if you’re in one of these plans and meet the age and income requirements, your catch-up contributions will need to be Roth contributions going forward.

Why does this matter?

First, let’s clear up what Roth means. Roth contributions are made with after-tax dollars, which means you pay taxes now, but withdrawals in retirement are generally tax-free. For many people, that’s a big advantage – especially if you expect to be in a higher tax bracket later in life.

But here’s the catch: If your plan doesn’t offer a Roth option, you won’t be able to make catch-up contributions at all. That’s why it’s so important to check your plan and understand your options now.

What should you do?

Here are a few steps to take:

• Check if your plan offers Roth contributions. Log in to your plan’s website and look under the “Contributions” or “Deferrals” section.
• Learn how to make Roth contributions. If this is new for you, the process might look different. Pay close attention to the instructions or reach out to your HR or Benefits team for help.
• Plan ahead. If you’ve been making pre-tax catch-up contributions, this change means you may need to adjust or at least review your tax and financial planning strategy going forward.

 How to turn the change into an opportunity

This change might feel like a hassle at first, but it’s actually a great opportunity to revisit your retirement strategy. Roth contributions can offer tax-free income in retirement, which could be a big benefit down the road.

Think of this as a chance to learn more about your plan and make sure you’re taking full advantage of everything it offers. While you’re at it, check out other features like employer matching, automatic escalation, or financial wellness tools. These can all help you build a stronger retirement plan.

The bottom line

SECURE 2.0’s Roth catch-up mandate is here, and it’s going to change the way many participants save for retirement. By understanding the rules now and taking a few simple steps, you can make this transition smooth and stress-free.

So, as we start 2026, ask yourself:

• Does my plan offer Roth contributions?
• Do I know how to make them?
• Who can I reach out to if I have questions?

Taking action today will help you avoid surprises tomorrow and keep you on track for the retirement you’ve been planning. I’ll be writing more about this change in the coming weeks, as there are several other factors investors will need to consider as they start putting more assets into Roth accounts.

And remember, if you have questions, you can always reach out to me!

IMPORTANT INFORMATION

The information contained herein is for educational purposes only and should not be construed as financial, legal or tax advice. Circumstances may change over time so it may be appropriate to evaluate strategy with the assistance of a financial professional. Federal and state laws and regulations are complex and subject to change.  Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of the information provided. Janus Henderson does not have information related to and does not review or verify particular financial or tax situations, and is not liable for use of, or any position taken in reliance on, such information.