Employees who are over 50 years of age and earning more than $145,000 in prior-year FICA wages will be required to direct their catch-up contributions ($8,000 in 2026) to their Roth 401(k), 403(b), etc. The standard $24,500 contribution (available to plan participants of any age) can still be deposited into either the pre-tax or the Roth version of their plan.
While Roth plan contributions don’t receive an upfront tax deduction, they do grow tax-free and can be distributed tax-free. For over-50 plan participants who are now limited to the Roth for their make-up contributions, it remains an outstanding opportunity for tax-sheltered retirement savings.
