The IRS has finalized new regulations that could catch many retirement savers off guard. Starting in 2026, if you earn $145,000 or more in wages, your catch-up contributions to workplace retirement plans must be made as Roth contributions. That means instead of deferring taxes now, you’ll pay taxes upfront and enjoy tax-free withdrawals later. For high earners, this change isn’t optional—it’s mandatory, and ignoring it could trigger compliance issues. Understanding this rule now can help you avoid costly mistakes and keep your retirement strategy on track.
