Markets· August 16, 2026 at 06:36 p.m.
High-Earning Workers Over 50 Must Switch to Roth 401(k) Accounts in 2026
Key takeaways
- The rule applies to 401(k), 403(b), and government 457(b) plans
- Roth contributions cannot be made if the plan does not offer a Roth option
A new rule effective from January 1, 2026, requires workers aged 50 or older who earned over $150,000 in Social Security wages in 2025 to make all catch-up contributions to their 401(k) accounts as Roth contributions. This change affects upfront deductions worth $1,900 to $2,700 per year for affected workers, depending on age and catch-up amount.
