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Roth Catch-up Contributions in Retirement Plans

Jackie Stutzman
07/15/2025

Roth Catch-up Contributions are coming! After a 2-year postponement, catch-up contributions will be required to be in Roth dollars in 2026 for certain participants.

Who Does This Affect?

As a reminder, participants over age 50 are allowed to contribute additional “catch-up” contributions to their employer-sponsored retirement plan.  In 2026, participants over age 50, who earned over $145,000 in FICA wages in 2025 will be required to have their catch-up contributions be in Roth dollars. An important note – if a plan does not offer Roth deferrals, participants over age 50 with over $145,000 in FICA wages will not be allowed to make catch-up contributions.

 

Next Steps for Employers

Employers will need to work closely with their payroll provider and retirement plan recordkeeper to ensure they are prepared for this change.  We encourage plan sponsors to start these conversations well in advance of year-end.

 

Some details to understand:

  • Roth catch-up requirement is for participants earning $145,000 or more in FICA wages in a previous calendar year from the plan-sponsoring employer. FICA wages earned outside of the plan-sponsoring employer do not need to be considered.
  • Participants without FICA wages are not subject to the Roth requirement.
  • New hires who do not have FICA wages from the plan-sponsoring employer in the previous calendar year are not subject to the Roth requirement.

 

If you have questions or need assistance, reach out to your Abbey Street Retirement Consultant today!

 

 

 

Learn More

Charles Schwab –https://www.schwab.com/learn/story/what-to-know-about-catch-up-contributions

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About The Author

Jackie Stutzman

Jackie oversees Abbey Street’s retirement plan relationships and was named one of the 2021 Top Women Advisors by the National Association of Plan Advisors (NAPA). She earned her Master’s in Business Administration (MBA) from the Carlson School of Management at the University of Minnesota and has years of retirement plan consulting experience.

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