There's a big change coming for 401(k) plans that could impact a popular tax break for higher earners, experts say.

For 2025, workers can defer up to $23,500 into 401(k) plans, and employees age 50 or older can save an extra $7,500 , known as "catch-up contributions." That catch-up limit jumps to $11,250 for workers age 60 to 63.

Typically, catch-up contributions can be traditional pretax or after-tax Roth, depending on what your 401(k) plan allows. But certain higher earners soon won't have a choice, thanks to a change enacted via the Secure 2.0 Act of 2022.

Starting in 2026, 401(k) catch-up contributions generally must be after-tax Roth if you earned more than $145,000 from your current employer during the previous year.

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