Age 50 or older and earning over $150,000? Your 2026 catch-up contributions may now be Roth.
If you turned 50 or older this year and your 2025 Social Security wages from your employer exceeded $150,000, every catch-up dollar you contribute to your 401(k) in 2026 has to be made as a Roth (after-tax) contribution. The IRS transition relief postponing implementation of the SECURE 2.0 Act Section 603 ended on December 31, 2025, making 2026 the first year this requirement applies to retirement contributions.
The reason to check your paystub now: you hit the regular deferral limit of $24,500 and intend to make catch-up contributions (limit of $8,000 for most or $11,250 if you are 60 to 63 this year). Once you cross that first threshold, the plan switches your contributions over to a Roth 401(k) automatically. By late September, many participants have already exceeded the regular deferral limit and may not realize their contributions are no longer reducing their taxable income.
Whether that is a problem or a windfall depends entirely on your situation. Review your September paystub and talk to your WG tax advisor before you change your deferral election.
For more details, including what this means if you also sponsor the plan, read our article, SECURE 2.0 Act: Key Changes Taking Effect in 2026.
