IRS shifts high-earner 401(k) catch-ups to Roth

The IRS issued regulations implementing SECURE 2.0 that require workers who earned $145,000 or more in the prior year to make 401(k) catch-up contributions to after-tax Roth accounts starting with the 2026 tax year. For 2025, the standard 401(k) contribution limit is $23,500 with an additional $7,500 catch-up for ages 50+ (and $11,250 for ages 60–63), but high earners will lose the option to make pre-tax catch-ups in 2026; plans without a Roth option may need updates or affected workers could be unable to make catch-ups. This change affects Twin Cities employees and employers administering retirement plans.