Starting in 2026, high earners in the United States will face a significant change in how they can make catch-up contributions to their 401(k) retirement accounts. The Internal Revenue Service (IRS) recently issued new regulations under the SECURE 2.0 Act, which affects individuals earning $145,000 or more annually. These workers will be required to make their catch-up contributions to after-tax Roth accounts instead of traditional pre-tax accounts.

Previously, workers aged 50 and older could make additional catch-up contributions to either a traditional or Roth 401(k) account. The traditional account option allowed them to reduce their taxable income for the year. However, from 2026 onwards, high earners will no longer have the option to receive this upfront tax break on their catch-up

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