Secure Act 2.0 Catch-up Requirement for Highly-paid Employees

Currently, employees in a standard (i.e., non-Roth) IRA may contribute up to $23,500, with “catch-up” contributions for employees over 50 of up to $7500 and a “super catch-up” of up to $11,250 for employees age 60-63. 

Effective January 1, 2026 the act requires that any catch-up contributions (i.e., contributions over the standard annual limit, which is $23,500 for 2025) made by employees earning $145,000 or more annually must be made on a Roth basis. That is, they must be made from taxed income. This means that affected employees will have to open a Roth IRA account if they do not already have one.