SECURE 2.0 Roth Catch-Up Calculator 2026 β Section 603
Determine if you must make Roth catch-up contributions in 2026 under SECURE 2.0 Section 603. Calculate the after-tax cost of forced Roth vs pre-tax, and 30-year retirement wealth projection.
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Your W-2 Box 3 or Box 5 from the SAME employer in 2025 $
$7,500 standard (age 50+); $11,250 if age 60-63 (SECURE 2.0 Sec 109) %
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Must Use Roth in 2026?
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Extra Tax Cost Now (Roth vs Pre-Tax)
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Roth Balance at Retirement
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Pre-Tax After-Tax Equivalent
SECURE 2.0 Section 603 Analysis
SECURE 2.0 Section 603 β Roth Catch-Up Requirement
Effective January 1, 2026, high-wage earners (prior-year FICA wages over $145,000) must designate all catch-up contributions as Roth. No pre-tax catch-up is allowed.
2026 Contribution Limits
Regular limit (all ages): $23,500 (pre-tax or Roth)
Age 50+ catch-up: $7,500 β MUST BE ROTH if wages over $145K
Ages 60-63 enhanced catch-up: $11,250 β MUST BE ROTH if wages over $145K
Wage threshold: Prior-year FICA wages over $145,000 from same employer
Age 50+ catch-up: $7,500 β MUST BE ROTH if wages over $145K
Ages 60-63 enhanced catch-up: $11,250 β MUST BE ROTH if wages over $145K
Wage threshold: Prior-year FICA wages over $145,000 from same employer
Sources and References (click to expand)
- SECURE 2.0 Act of 2022, Section 603 β Roth Treatment of Catch-Up Contributions
- IRS Notice 2023-62 β Delay of Effective Date for SECURE 2.0 Catch-Up Provision
- IRC Section 402(g) β Limitation on Exclusion for Elective Deferrals
- IRC Section 414(v) β Catch-Up Contributions for Individuals Age 50 or Over
- Treasury Reg 1.401(k)-1 β Cash or Deferred Arrangements
Extended
Lifetime Roth vs Pre-Tax Projection Calculator
5-year catch-up contribution input, Roth vs pre-tax retirement balance comparison, SVG line chart of after-tax wealth, and tax bracket arbitrage analysis.
Enter up to 5 years of catch-up contributions to project Roth vs pre-tax retirement wealth.
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Roth vs pre-tax after-tax balance over time.
Compare Roth vs pre-tax net value across different retirement tax rates.
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| Retirement Tax Rate | Roth After-Tax Value | Pre-Tax After-Tax Value | Roth Advantage |
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Frequently Asked Questions
What is the SECURE 2.0 Roth catch-up requirement and when does it take effect?
SECURE 2.0 Act Section 603 requires that employees with prior-year FICA wages exceeding $145,000 (indexed for inflation) make their catch-up contributions on a Roth (after-tax) basis only β no pre-tax catch-up option. This applies to 401(k), 403(b), and 457(b) plans. After a two-year IRS delay (IRS Notice 2023-62 granted relief through 2025), the rule takes effect January 1, 2026. The $145,000 threshold is indexed for inflation. For 2026 the threshold remains approximately $145,000 unless updated. Only the CATCH-UP portion (age 50+) is affected β regular contributions can still be pre-tax.
Who is affected by the SECURE 2.0 Roth catch-up rule in 2026?
You are affected if you: (1) will be age 50 or older by December 31, 2026, AND (2) had FICA wages (W-2 Box 3 or Box 5) exceeding $145,000 from the SAME employer in 2025. The $145,000 threshold is based on prior-year wages from the same employer β not household income. If you had multiple employers, each employer looks at your wages with that employer only. Key: SIMPLE IRA plans are excluded from this requirement. Also, the special catch-up for ages 60-63 under SECURE 2.0 Section 109 ($11,250 in 2026 vs $7,500 standard) must also be Roth if you meet the wage threshold.
What is the 2026 catch-up contribution limit?
For 2026, the standard 401(k)/403(b) elective deferral limit is $23,500 for everyone. The age-50+ catch-up contribution is $7,500 (making total possible $31,000). However, SECURE 2.0 Section 109 created a special enhanced catch-up for ages 60-63: $11,250 catch-up instead of $7,500 (total $34,750). Ages 64 and over revert to the $7,500 standard catch-up. If you meet the $145,000 wage threshold, any catch-up contributions (whether $7,500 or $11,250) MUST go into a designated Roth account. Plans without a Roth option cannot accept catch-up contributions from high-wage earners.
What are the tax implications of being forced into Roth catch-up?
Roth contributions are made with after-tax dollars β you pay income tax on the catch-up amount now instead of deferring it. The trade-off: Roth withdrawals in retirement are completely tax-free (including earnings), while pre-tax withdrawals are fully taxable. The Roth option benefits you if you expect to be in a higher tax bracket in retirement, if you want tax diversification, or if you have a long investment horizon (more time for tax-free growth). The pre-tax option is better if you expect a lower tax bracket in retirement, need the current-year deduction, or are very close to retirement. The forced Roth rule eliminates this choice for high-wage earners.
What happens if my plan does not have a Roth option?
Starting in 2026, if your employer plan does not offer a designated Roth account, employees earning over $145,000 simply cannot make any catch-up contributions to that plan. You cannot put the catch-up dollars into a pre-tax account as a workaround. The IRS has given employers until January 1, 2026 to add Roth features to their plans. If your plan lacks a Roth option, you could consider contributing catch-up amounts to a Roth IRA instead (subject to income limits β the Roth IRA phase-out for 2026 starts at $150,000 for single filers and $236,000 for married filing jointly). Congress may address this gap in future legislation.