Understanding the 2026 Roth Catch-Up Rule for High Earners
Beginning in 2026, a new rule will change how some employees make catch-up contributions. Workers age 50 or older who earned more than $150,000 in 2025 FICA wages must make their catch-up contribution as Roth, not pre-tax. Regular deferrals do not have to change.
Plan sponsors can choose from several ways to apply the rule. You may ask employees to make a separate Roth election, automatically treat high earners’ catch-up dollars as Roth, or remove catch-up contributions altogether. Each option affects payroll, communication, and plan operations in different ways.
This guide breaks down the rule, the choices you can make, and key points to consider as you prepare your plan for 2026 and beyond.
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Greenspring Advisors is a registered investment adviser and does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.
This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.
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