New Tax Laws for 2026 Filing Season: Catch-Up Contributions
With the IRS announcing that Monday, January 26, 2026 is the opening of the 2026 tax season, it’s time to start working on your family’s filing and learn how new tax laws affect it. Tax law changes come every year, so it’s important to stay updated for both state and federal tax filing news to see whether or not it changes how you file.
This year, catch-up contributions have changed for many older, working citizens. New Roth catch-up rules for high-income earners have been put in place that require a different approach to saving.
What are Catch-Up Contributions?
For those who are 50 or older, catch-up contributions allow you to devote extra money toward your retirement account, beyond annual elective deferral limits. Because these deferral limits are set and managed by the IRS, Roth catch-up contributions give you an opportunity to save beyond these limits as you reach retirement age
This makes catch-up contributions especially useful for those who have either delayed saving for retirement, or those who are behind their retirement savings goals.
Who Specifically Qualifies for Catch-Up Contributions?
In order to take advantage of catch-up contributions, you have to meet certain criteria.
Available for Those Age 50 and Older
Only those who are, or are over, the age of 50 by December 31, can make catch-up contributions to retirement accounts. This is because eligibility begins the year you turn 50. These contributions are given the name they are because they are a great way for those who are later in life but behind in saving for retirement. Through these contributions, individuals have another way to try to “catch-up” to others who have been saving for longer.
For 401(k), 403(b), 457(b) Holders and More
Catch-up contributions function to allow deposits above the limit specifically for retirement accounts. Because the IRS sets limits for ROTH contributions, 401(k) contributions, etc, catch-up contributions are a great opportunity to go beyond these limits once they become available to you.
The only thing to keep in mind is that the limit is different depending on the type of account, so it’s important to know what these standard, catch-up, and total contribution limits are for your specific retirement plans.
But, that doesn’t mean you can’t reach the contribution limit for only one account. As Charles Schwab mentions, “if you hold more than one type of retirement account and meet eligibility requirements, you can potentially make catch-up contributions to both accounts.” So long as you don’t end up reaching and going over your contribution limit for each individual account type, then you can fully take advantage of catch-up contributions by diversifying where you’re saving.
New Rules and Contribution Limit Changes
As with every tax season, there are new rules to keep in mind, and this includes catch-up contributions.
Contribution Limits
Annual contribution limits for most types of accounts have gone up some with the new catch-up contribution limit changes. So, if you were planning on making catch-up contributions, you can now make a little more moving forward. If you can still match them, these higher catch-up contribution amounts are a great way toward meeting your retirement goals.
SECURE 2.0 Act
With 2026 comes the new, SECURE 2.0 Act. This change implements a new rule for higher earners that are 50 and over in how they make contributions specifically to employer-sponsored plans. IRAs are not impacted by this rule, only employer-sponsored retirement plans.
Starting from January 1, 2026, any worker who is 50 by December 31 or older and earned more than $150,000 in FICA wages during their prior year of employment must make catch-up contributions on a Roth basis. When it comes to pre-tax and/or your Roth contributions for your retirement account, you can still do these as normal up to your $24,500 limit. This new rule only applies to catch-up contributions.
So, this also means if you make $150,000 or less the year prior, then you can make your catch-up contributions to any regular pre-tax and/or Roth 401(k)s without any issues.
What Do Higher Earners Have to Do?
On your 2025 taxes, your Form W-2 should have your wages (FICA wages) in Box 3. If they exceeded $150,000, you’ll need to check with your retirement plan sponsor or provider to check how catch-up contributions work for your plan, as each one can be slightly different.
Financial Advisors Make Tax Changes Simple
With new changes to catch-up contributions in 2026 and other changes that are bound to come in future years, finding a financial advisor to turn to during tax season can take a large part of the burden off your shoulders. With the capability to help you determine what types of contributions best fit your needs, walk you through yearly tax changes with ease, and ensure you’re getting the most out of your retirement savings planning, Wiser Financial Group is here to help. Give us a call today for a consultation and see what guidance we can offer!
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