Some of the biggest benefits of the Securing a Strong Retirement Act (the SECURE Act) are reserved for those age 50 and older who are trying to save as much as they can for retirement.
Which is why some of its most unique provisions are aimed at these “catch-up contributors.”
Inflation-linked catch-up limits for IRA participants
In 2025, the regular IRA contribution limit is $7,000, and the catch-up limit is currently $1,000.
The SECURE Act allows for IRA catch-up limits to indexed for inflation. When they occur, Increases will be in $100 increments.
Thus, in 2026, the regular IRA contribution limit will rise to $7,500 and the catchup limit will be $1,100.
Bigger catch-up benefits for retirement plan participants
Retirement plan participants benefit from higher regular and catch-up-contribution limits. For example, in 2026, you'll be able to make regular contributions of up to $24,500, plus up to $8,000 in additional catch-up contributions, to your 401(k) plan. Contribution limits are linked to the most recent inflation rate.
Starting this year, you also get the biggest catch-up contribution benefits if you’re age 60, 61, 62 or 63.
During these four years you can contribute up $11,250. This amount will stay the same in 2026.
But there’s a catch. SECURE 2.0 eliminates pre-tax catch-up benefits for higher earners.
Starting in 2026, if you’re making more than $150,000 per year, all of your retirement plan catch-up contributions must be after-tax Roth contributions. This rule applies to 401(k) plans, 403(b) plans and 457(b) plans.
Keep in mind that this $150,000 threshold will only apply to W-2 income you receive from your current employer. Any side-gig, rental or investment income you earn outside your regular job doesn’t apply.
Your potential loss in pre-tax contribution benefits may be made up for by the fact that all distributions from a Roth retirement account made after age 59½ are tax-free, provided that the account has been established and funded for at least five years.
If that wasn’t enough, SECURE 2.0 provides two additional benefits to sweeten the Roth pot:
- You’ll never have to take Required Minimum Distributions (RMDs) from your Roth retirement plan account while you’re alive. This is good news if you want these assets to grow untouched for as long as possible or if you want your spouse or children to inherit these assets without having to pay taxes when they take distributions from the account.
- Employers can now make matching contributions to your Roth retirement account, which they weren’t able to do before. Keep in mind that these matching contributions are made on an after-tax basis.
A tax professional or financial advisor can help you figure out if it makes sense to take advantage of any of these SECURE 2.0 catch-up provisions either now or later, given your specific retirement planning objectives.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer before you implement any of these strategies.
This article was authored by Chris Gullotti and Jeffrey Briskin. Chris is a financial advisor and Partner with Canby Financial Advisors, a SEC-registered investment adviser. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or training. Chris can be reached at 508.598.1082 or cgullotti@canbyfinancial.com. Jeffrey Briskin is Director of Marketing at Canby Financial Advisors.
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