The SECURE Act 2.0 continues to roll out in phases, and 2026 marks another step in that process. While the changes aren’t sweeping, they may influence how some individuals approach retirement contributions, especially those in their final working years.
One of the key updates involves catch-up contributions. Starting in 2026, higher-income workers age 50 and older who make catch-up contributions through employer plans are required to direct those dollars into Roth (after-tax) accounts. This shifts when taxes are paid, without changing the overall ability to save.
Contribution limits also continue to adjust. Enhanced catch-up limits for individuals ages 60 to 63 remain available, depending on plan rules, and standard limits may increase over time as they are indexed for inflation.
Taken together, these updates reflect a broader effort to expand access to retirement savings and encourage consistent participation. Even incremental rule changes can shape how savers think about their long-term planning.
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What’s the main SECURE Act 2.0 change in 2026?
The requirement that certain higher-income savers make catch-up contributions as Roth (after-tax) contributions.
Who does this affect?
Generally, workers age 50 or older whose income exceeds a specific threshold and who choose to make catch-up contributions in employer plans.
Are pre-tax contributions going away?
No. Only catch-up contributions for certain individuals are affected. Regular contributions can still be made pre-tax.
Are contribution limits changing?
Limits continue to be indexed for inflation, and higher catch-up limits remain available for ages 60–63, subject to plan design.
Does this apply to everyone?
No. Some changes affect only specific age or income groups, while others are implemented at the plan level.
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References
- IRS.gov
- U.S. Congress. SECURE Act 2.0 of 2022 (Public Law 117-328)
Disclosures: This material is for informational purposes only and is not intended as tax, legal, or investment advice. Investors should consult with their tax advisor or financial professional regarding their individual situation.