What to Know About New Rules for 401(k) ‘Catch-Up’ Contributions in 2026

If you’re a high-earning, older worker, the rules for making “catch-up” contributions to a 401(k) or similar job-based retirement plan have changed.

Starting this year, employees 50 and older earning more than $150,000 who make contributions beyond the standard allowed amount must deposit that extra money into a Roth 401(k). That means you won’t get an upfront tax break for the extra contributions and your take-home pay may be lower. Until now, those contributions could go into your 401(k) pretax and reduce your taxable income.

That could catch some people by surprise, tax experts say. “It is a major change for a lot of people,” said Miklos Ringbauer, a certified public accountant with offices in Southern California.

Here’s what to know.

What are catch-up contributions?

The idea behind the extra contributions is that people may be behind on saving and can “catch up” by setting aside more money as they near retirement age.

Article source: https://www.nytimes.com/2026/01/23/your-money/401k-contributions-catch-up-roth-retirement.html