SECURE 2.0 Roth Catch-Up Rule Is Now Active for High Earners Above $150,000
Starting January 1, 2026, workers earning above $150,000 in prior-year FICA wages can no longer make pre-tax catch-up contributions to workplace retirement plans; those dollars must go into Roth accounts instead. For a single filer earning $160,000 who previously contributed $7,500 in traditional catch-up funds, the shift eliminates roughly $1,800 in annual federal tax deductions, plus additional state-level costs in high-tax states. Major recordkeepers including Fidelity, Vanguard, and Schwab have confirmed operational readiness, but the primary compliance risk now sits with individual employers who must update payroll coding and formally amend plan documents by December 31, 2026.