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SECURE 2.0 Updates

What’s changing

Starting January 1, 2026, participants age 50 or older and 2025 FICA wages more than $150,000¹ from their current employer, must make their catch-up contributions as Roth post-tax contributions. If their FICA wages were $150,000 or less, they can make either pre-tax or Roth contributions, or both.

This is part of the SECURE 2.0 law of 2022 and applies to all retirement plans.

What’s staying the same

Regular employee contributions—up to the IRS limit—can still be made on as pre-tax and/or Roth contributions.

This change applies only to catch-up contributions.

Who will be affected

You’ll need to make catch-up contributions as Roth if you:

  • Are age 50 or older, and

  • Earned more than $150,000 in FICA wages in the prior year at your current employer, and

  • Want to make catch-contributions above the standard IRS limit.

Catch-up contributions allow participants age 50 and older to make additional contributions from their paycheck to their retirement account above the standard IRS limit for that year. The IRS limit for elective deferrals and for catch-up contributions changes each year.

Learn more about contribution limits.

Who will not be affected?

This does not apply to you if you:

  • Are clergy earning SECA wages (not FICA), or

  • Earned $150,000 or less in 2025

  • Earned more than $150,000 in 2025, but since started working for a new employer

If you’re unsure whether your wages are FICA or SECA, check with your employer or a tax advisor.

What are the benefits of Roth?

Roth post-tax contributions are made after taxes, but your qualified withdrawals in retirement will be federal tax-free. Over time, that can make a meaningful difference in your long-term savings.

Review our Pre-Tax vs. Roth (Post-Tax) Contributions explainer for more information.

Next steps
  1. Check your 2025 W-2, Box 3, when available. See if you earned more than $150,000 in FICA wages.
  2. Speak with your employer about making Roth catch-up contributions.
  3. Consult with your financial advisor, if you have one.
  4. Consider making a Roth contribution now, even if it’s $1. If you make your first Roth contribution anytime in a calendar year, your five-year clock for tax-free withdrawals begins on January 1 of that calendar year. This will get your five-year clock running and give you access to tax-free withdrawals sooner rather than later.

Get guidance. Contact us or speak to your employer or a tax advisor if you have questions.

Post-tax withdrawals are federal tax-free if:

  • You are at least 59.5 years old, and
  • You’ve had your account for at least five years, beginning January 1 of the year you made your first Roth contribution.

Start allowing employees to make Roth contributions today for their standard elective deferrals (if you don’t already).

Learn more.

Questions? We’re here to help.

Contact our Employer Services Team:

Robert Perry
Director of Participant and Employer Services
646.884.9890
rperry@rpb.org

Alyce Gunn
Chief Financial Officer
646.884.9888
agunn@rpb.org

Effective 2025 for participants age 60 - 63

Super catch-up contributions. Starting in 2025, participants who are between age 60 and 63 by the end of the calendar year will be able to make catch-up contributions up to 150% more than the standard catch-up amount. The standard catch-up limit for people age 50 and older is currently $7,500.

Check with your payroll provider to make sure they are set up to process the new age 60-63 catch-up limit.

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