By Ted Stricker, CFP®
The SECURE 2.0 Act of 2022 was landmark legislation that built upon the initial SECURE Act to help increase retirement savings. The chief provisions included a mandatory auto-enrollment requirement for many new retirement plans beginning in 2025, increased “catch-up” contribution limits, and simplified rules designed to encourage workers to save for retirement.
The Act also includes a mandatory Roth treatment for catch-up contributions made by certain high-income earners in employer-sponsored retirement plans. This provision takes effect in 2026. At Bernath + Rosenberg, we believe taking a proactive approach to tax and financial planning often yields the best results for those with the foresight to plan ahead. Let’s take a look at the changes to the SECURE legislation so you can set your strategy for 2026.
Significant SECURE 2.0 Tax Law Changes in 2026
- Mandatory Roth catch-up contributions for high earners: Starting January 1, 2026, employees aged 50 and older who earned more than $150,000 in FICA (Social Security) wages from a single employer in the prior calendar year must make their catch-up contributions to a Roth (after-tax) account.In addition, employer plans must provide for a Roth component of the plan to allow for Roth-type contributions. If not, those over 50 and over the income cap may not make catch-up contributions.
- This rule applies to 401(k), 403(b), and governmental 457(b) plans.
- The regular contribution limit will be $24,500 in 2026. The regular “catch up” contribution limit is $8,000 for individuals age 50-59 and age 64 and over.
- The income threshold of $150,000 will be adjusted for inflation annually.
- Employees earning at or below the threshold can continue to choose between pre-tax or Roth catch-up contributions (if their plan permits).
- Increased “super” catch-up contribution limits (ages 60-63): While this provision took effect in 2025, the increased limits are fully applicable in 2026. Individuals aged 60 through 63 can contribute the greater of $10,000 or 150% of the standard catch-up amount (adjusted for inflation). For 2026, this enhanced catch-up contribution limit is $11,250 in addition to the standard contribution limit.
- High earners in this age bracket are also subject to the mandatory Roth requirement for these “super” catch-up contributions.
- Annual paper statement requirement: Defined contribution plans (like 401(k)s) must generally provide at least one annual paper benefit statement to participants, unless a participant actively chooses electronic delivery. If you don’t receive such a benefit statement, contact your HR department to inquire, since the plan sponsor is now required to provide it. (1)
What it Means for You
- Higher current taxes for high earners: If you are a high-income earner subject to the mandatory Roth rule, your current taxable income will increase because you will no longer receive an up-front tax deduction for your catch-up contributions. This may require additional tax planning to account for the increased taxable income you may experience in 2026, all else being equal from 2025.
- Keep the new higher standard deductions in mind: OBBBA provided higher standard deductions 2026. The deduction increased to $16,100 for single filers and $32,200 for married couples filing jointly. These figures are a result of both annual inflation adjustments by the IRS and provisions from OBBBA. For those still working at 65 and over, an extra $2,050 deduction may be claimed for single filers/heads of household, or $1,650 per qualifying spouse for married couples filing jointly. There is also a “senior bonus deduction” that could be available to those 65 and older, subject to income limitations. These extra deductions could help offset the new tax liability caused by “catch-up” contributions no longer being deductible if this applies to you. (2)
- Tax-free withdrawals in retirement: The trade-off is that these Roth contributions and their earnings can be withdrawn tax-free in retirement, which can be advantageous if you expect to be in a similar or higher tax bracket later. This is why we often encourage our own clients to not only tax-plan for the present year, but look beyond the present and set multi-year tax strategies that may provide tax efficiency over the long term.
What You Can Do to Get Started
- Check your income status: Determine if your 2025 FICA wages from your employer exceeded $150,000 (check Box 3 of your W-2).
- Review plan options: Confirm your employer’s plan offers a Roth option. If it doesn’t, high-income employees may be unable to make any catch-up contributions until the plan is updated.
- Consult a professional: Consider speaking with a financial or tax advisor to integrate these changes into your overall retirement and tax strategy, especially if you have other retirement accounts like a Roth IRA or need to explore a “backdoor” Roth conversion strategy. If you don’t have a tax advisor, contact us for a consultation.
- Look for statements: Expect at least one physical statement per year from your plan administrator, which may require you to update your contact information with them if you move frequently.
If You Have Tax or Retirement Planning Questions, Let’s Talk!
Choosing and implementing tax strategies and weaving these into a solid and successful retirement plan can be confusing and complex, but our team is here to help!
By coordinating your tax planning with your overall financial planning and long-term goals, our assistance could be beneficial (and vital) to your financial future. With our Certified Public Accountants and CERTIFIED FINANCIAL PLANNER® professionals, Bernath + Rosenberg stays current with the latest in tax laws and planning strategies to help you pursue a rewarding and comfortable retirement, according to your unique and special objectives.
To get started in creating a solid, tax-efficient retirement income plan in 2026, schedule a meeting by calling (212) 221-1140 or email tstricker@brwealth.com.
Frequently Asked Questions
What changes to SECURE 2.0 take effect in 2026 under the OBBBA?
The most impactful SECURE 2.0 change in 2026 comes from the OBBBA legislation, which requires high earners age 50 and older to make catch-up contributions to employer retirement plans as Roth (after-tax) contributions. This rule applies to individuals who earned more than $150,000 in FICA wages from a single employer in the prior year and affects 401(k), 403(b), and governmental 457(b) plans. These contributions are no longer deductible up front but can be withdrawn tax-free in retirement.
How do mandatory Roth catch-up contributions affect tax planning?
Mandatory Roth catch-up contributions can increase current taxable income for high earners because they eliminate the immediate tax deduction previously available for catch-up contributions. As a result, tax planning becomes more important to manage cash flow, offset higher taxes with available deductions, and coordinate retirement savings across taxable, tax-deferred, and Roth accounts. Multi-year tax planning strategies can help smooth the impact while improving long-term tax efficiency.
How can Bernath + Rosenberg help with SECURE 2.0 and retirement plan changes?
At Bernath + Rosenberg, we help clients integrate SECURE 2.0 and OBBBA changes into a coordinated tax planning and retirement strategy. By reviewing income thresholds, employer retirement plan options, and available deductions, our CPAs and CERTIFIED FINANCIAL PLANNER® professionals help clients understand how Roth requirements, catch-up limits, and future tax considerations fit into a long-term retirement plan. This proactive approach helps clients adapt confidently as retirement plan rules continue to evolve.
About Ted
Ted Stricker is a partner and financial advisor at Bernath + Rosenberg, a full-service accounting, tax, and wealth management firm with offices in Monsey, NY, Lakewood, NJ, Cedarhurst, NY, and Miami Beach, FL. The firm demonstrates a personalized approach to custom-tailored solutions and an unwavering commitment to client service. With over 27 years of experience in the financial services industry, Ted manages the firm’s wealth management team, and specializes in designing financial plans for business owners and affluent families. Since joining the team in 2015, he provides practical and sound advice, combining independent approaches and solutions that reflect clients’ personality, lifestyle, and goals.
For the ninth year in a row, Bernath + Rosenberg has been named as one of the leading CPA firms in financial planning by Accounting Today, a publication that receives hundreds of submissions each year and features the Top 150 Firms in the nation. Ted is a CERTIFIED FINANCIAL PLANNER® practitioner and is a member of the Financial Planning Association. To learn more about Ted, connect with him on LinkedIn.
Professionals associated with Bernath & Rosenberg P.C. may be either (1) registered representatives with, and securities and advisory services offered through LPL Financial, Member FINRA/SIPC, a registered investment advisor; or (2) solely tax professionals of Bernath & Rosenberg P.C., and not affiliated with LPL Financial. Tax/accounting/CPA related services offered through Bernath & Rosenberg P.C. is a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or Tax/accounting/CPA related services.
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(1) https://humaninterest.com/learn/articles/secure-act-2-understanding-proposed-legislation-securing-a-strong-retirement-act/
(2) https://taxfoundation.org/data/all/federal/2026-tax-brackets
