Mandatory Roth Catch-Up Contributions in 2026 | A Major Retirement Rule Change

Описание: A major retirement rule change takes effect January 1, 2026 — and it will affect many higher-earning workers age 50 and older.

The IRS has finalized SECURE Act 2.0 regulations requiring certain catch-up contributions to be made on a Roth (after-tax) basis. This is the first time in U.S. history the tax code has mandated Roth retirement savings.

If you’re a higher earner making catch-up contributions, this change may affect your take-home pay, tax strategy, and long-term retirement planning.

In this video, we cover:
– 📌 Who this rule applies to and how the income threshold works
– 📌 Why Congress implemented mandatory Roth catch-up contributions
– 📌 What this means for federal employees and the Thrift Savings Plan (TSP)
– 📌 How private-sector retirement plans are impacted
– 📌 Key planning considerations to think about before 2026

For federal employees, the TSP will automatically apply these rules. For private-sector workers, employer plans must offer a Roth option in order for catch-up contributions to be allowed starting in 2026.

While paying taxes now can feel counterintuitive during peak earning years, Roth catch-up contributions may offer benefits such as tax-free growth, tax-free withdrawals in retirement, and reduced required minimum distributions.

Understanding this change now gives you time to prepare before 2026 arrives.

Subscribe for clear, practical guidance on federal benefits, retirement planning, and important rule changes that can materially affect your financial decisions.