--- title: "SECURE 2.0 Update: Roth Catch-Up Contributions Required for High Earners in 2026" description: The SECURE 2.0 Act introduced several changes. One is the requirement for certain employees to make catch-up contributions on a Roth basis. Learn more here image: https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header%20(12)-2.png --- [ ← Back to Blog ](https://rmcgp.com/blog) # SECURE 2.0 Update: Roth Catch-Up Contributions Required for High Earners in 2026 Written By RMC Group Published on: September 22, 2025 **Categories:** Compliance Update,Retirement Plans ![SECURE 2.0 Update: Roth Catch-Up Contributions Required for High Earners in 2026](https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header%20(12)-2.png) # *What Employers, Advisors, and Participants Need to Know About Section 603 of the Secure 2.0 Act* The SECURE 2.0 Act introduced several retirement plan updates, but one of the most significant—and now imminent—changes is the requirement for certain employees to make catch-up contributions on a Roth (after-tax) basis. After an IRS delay, this rule officially takes effect on January 1, 2026.   ## **Who Is Affected?** This provision applies to employees who: - Are age 50 or older, and - Earned more than $145,000 (indexed for inflation) in FICA wages from the same employer in the prior year. These individuals are referred to as Highly-Paid Individuals (HPIs).   ## **What’s Required Under the New Rule** - Catch-up contributions must be Roth. All age 50+ catch-up contributions for HPIs must be made on an after-tax basis. - No pre-tax catch-ups. Pre-tax catch-up contributions are no longer permitted for HPIs. - Plans must offer Roth. If a 401(k) or 403(b) plan does not offer a Roth option, HPIs will be prohibited from making catch-up contributions.   ## **Why It Matters** This rule affects both 401(k) and 403(b) plans and represents a significant shift in contribution strategy. Participants will need to prepare for: - After-tax contributions. Roth contributions reduce take-home pay at the time of contribution. - Tax-free growth. Provided conditions are met, Roth balances grow and distribute tax-free in retirement. - Impact on retirement strategy. For some participants, this may require rethinking tax and retirement income planning.   ## **What Plan Sponsors Should Do Now** To prepare for the January 1, 2026, enforcement date, plan sponsors should: - Review plan documents to confirm Roth contributions are available. - Coordinate with payroll providers to ensure systems can track Roth catch-up contributions. - Educate participants—especially those affected—about how this change impacts contributions and tax planning. - Consider discretionary amendments if the plan’s current design does not accommodate Roth catch-ups.   ## **Key Takeaway** The SECURE 2.0 Roth catch-up contribution rule is more than just a compliance update—it impacts employee savings strategies and employer plan design. Sponsors who prepare early will ensure a smooth transition for participants and avoid disruption to contributions. RMC Group can help you review your plan, identify any gaps, and implement the required changes before the 2026 deadline. 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[Read More](https://rmcgp.com/blog/what-happens-to-your-retirement-plan-when-you-sell-your-business) 1004 Collier Center Way #206 Naples, FL 34110 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "RMC Group", "url" : "https://rmcgp.com/blog/author/rmc-group" }, "dateModified" : "2025-09-22T15:45:00.879Z", "datePublished" : "2025-09-22T15:45:00.000Z", "headline" : "SECURE 2.0 Update: Roth Catch-Up Contributions Required for High Earners in 2026", "image" : [ "https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header%20(12)-2.png" ], "mainEntityOfPage" : { "@id" : "https://rmcgp.com/blog/secure-2.0-update-roth-catch-up-contributions-required-for-high-earners-in-2026", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://rmcgp.com/hubfs/RMC_Group_Logo_%5BYW.BL.NA%5D.svg" }, "name" : "RMC Group" } } ```