Earn More Than $150,000 and Over 50? Your 401(k) Catch-Up Rules Changed in 2026

Workers over 50 can generally contribute up to $32,500 to most 401(k) plans in 2026, but higher earners above the applicable wage threshold must make catch-up contributions on a Roth basis – Shutterstock

Turning 50 used to open the door to extra traditional 401(k) contributions without much fuss. In 2026, higher earners face a new wrinkle: workers whose wages exceed a federal threshold generally must make their catch-up contributions on a Roth basis.

That change matters because Roth contributions work differently at tax time. Instead of receiving the usual upfront federal income-tax deduction, workers pay taxes on those contributions now and may qualify for tax-free withdrawals later. The new rule doesn’t eliminate the extra savings opportunity, but it changes how that money enters a retirement account.