Last Updated on February 17, 2026 by stlplace
Received below from the HR department of the company I am working for.
New Roth Catch-Up Requirement
Starting January 1, 2026, a new rule under the SECURE 2.0 Act will impact how certain employees can make catch up contributions to the Enterprise Holdings Retirement Savings Plan.
What’s Changing?
If you’re turning age 50 or older in 2026 and your total 2025 FICA wages (Box 3 on your 2025 form W-2) are over $145,000, any catch-up contributions you make in 2026 are required to be after-tax Roth contributions.
What does this mean for you?
If your FICA wages are over $145,000 in 2025, catch-up contributions must be made as after-tax Roth contributions in 2026. This will be done automatically thru our payroll department.
If your FICA wages are $145,000 or less in 2025, this regulation will not apply to you, and no changes will be made to your catch-up contributions.
What are Catch-Up Contributions?
Catch-Up contributions are extra contributions that participants aged 50 and over can make into their retirement plan. Participants 50 and over can contribute $7,500 above the standard limit of $23,500 (for 2025), and participants aged 60 – 63 can contribute $11,250 more than the standard limit (for 2025).
Effective January 1, 2026, catch-up contributions will be automatically made as after-tax Roth contributions for employees whose FICA wages were over $145,000 in 2025.
If you do not want to make Roth catch-up contributions in 2026, you will need to change your 401k contribution rate to 0% before you reach the 2026 standard limit. The IRS has not announced the 2026 standard limit yet; however, it was $23,500 in 2025.
What are Roth Contributions?
Roth contributions are after-tax contributions, which grow tax-free and can be withdrawn tax-free in retirement, as long as five years have passed since your first Roth contribution, and you have attained the age of 59½.
Steps you can take now
• Talk to a financial or tax advisor to understand how this change may affect your retirement strategy.
References
2026 Retirement Plan Contribution Limits and Catch-Up Rules (Mercer Advisors)