Retirement Account Rules for 2026: What Changed Under Secure 2.0
SECURE 2.0 was enacted in 2022, but its retirement provisions have taken effect over several years. For 2026, the change most likely to require action is a Roth requirement for some employees who make catch-up contributions. Updated contribution limits also give many savers more room to contribute. Here is what to check before year-end.
A new Roth rule for some catch-up contributions
Beginning in 2026, employees whose 2025 Social Security wages from the employer sponsoring their plan exceeded $150,000 generally must make their 2026 catch-up contributions to that plan as Roth contributions. This applies to covered workplace plans that allow catch-up contributions. Roth contributions are included in taxable income now; eligible Roth distributions may be tax-free later. The rule does not require an employee to make regular contributions on a Roth basis.
The test looks at wages from the sponsoring employer in the preceding year, rather than total household income. If you are at least 50 and made more than $150,000 from that employer in 2025, review your payroll elections and ask the plan administrator how catch-up contributions are handled.
Higher contribution limits for 2026
The basic employee deferral limit for most 401(k), 403(b), and governmental 457(b) plans is $24,500 in 2026. Participants age 50 or older may generally add an $8,000 catch-up contribution, for a total of $32,500 if their plan permits it. The combined annual contribution limit for traditional and Roth IRAs is $7,500, plus a $1,100 catch-up for those age 50 or older, for a total of $8,600. IRA eligibility and deduction rules still apply.
These 2026 dollar increases are annual adjustments. They are useful planning figures, but the increases themselves are not newly effective SECURE 2.0 provisions.
An extra catch-up opportunity at ages 60 through 63
SECURE 2.0 introduced a larger catch-up contribution for people who turn 60, 61, 62, or 63 during the year. For 2026, the higher catch-up amount is $11,250 for most 401(k), 403(b), and governmental 457(b) plans. Combined with the $24,500 basic limit, that can permit $35,750 in employee deferrals, subject to plan terms. For applicable SIMPLE plans, the higher 2026 catch-up amount is $5,250.
This provision first applied in 2025. Its 2026 amounts are relevant this year, although the larger catch-up opportunity itself is not brand new.
The Saver’s Match starts in 2027
SECURE 2.0 also created a federal Saver’s Match for eligible lower- and moderate-income savers. It is scheduled to begin for tax years after 2026, replacing the current Saver’s Credit. It is a future planning item, not a match on 2026 contributions.
What to check before year-end
Review your year-to-date contributions and the limit that applies to your age and plan. If you make workplace catch-up contributions, determine whether the new Roth rule applies based on your 2025 wages from that employer. Employers should confirm their payroll settings and plan procedures. A timely review may help you use your available contribution room and avoid a surprise in your 2026 taxable income.
This article provides general information. Plan provisions, compensation, age, and individual tax circumstances can change the result.