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SECURE 2.0 Updates

Catch Up Contributions

Certain participants will be able to increase their catch-up contributions and higher earners must make their catch-up contributions on a Roth basis. RPB will notify the affected participants of these changes.

Effective 2025 for participants aged 60 - 63

Higher catch-up amount. Participants between the ages of 60 and 63 will be able to make catch-up contributions up to $10,000 or 150% more than the standard catch-up amount, whichever is greater. (In 2023, the catch-up limit for people ages 50 and older is $7,500.)

Effective 2026 for high earners

High earners must use Roth option for catch-up contributions. Beginning in 2026, participants aged 50 and older who earned more than $145,000 in the prior calendar year (indexed for inflation) will be required to make catch-up contributions on a post-tax Roth basis. While this will increase the immediate tax burden of high earners who are currently making catch-up contributions with pre-tax dollars, qualified Roth withdrawals, including earnings, are free from federal income taxes.

RPB and our recordkeeper, Fidelity, are working to ensure a smooth transition for employers and participants by the effective date. We will update employers on their next steps in the near future.

Keep in mind that RPB’s plan currently allows all participants to make Roth contributions for their standard elective deferrals.

Catch-up contributions allow participants aged 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.

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

Learn more.


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