Retirement Plans for Business Archives

Catch-up Contribution Changes

Angela Hall on January 26, 2026

What You Need to Know

Saving for retirement is getting a boost in 2026, especially for older workers. New IRS rules are expanding catch-up contribution opportunities while also introducing important changes around Roth catch-up contributions.

Whether you’re a plan sponsor or a participant, understanding these updates can help you make smarter retirement planning decisions and avoid surprises.

What Are Catch-Up Contributions?

Catch-up contributions allow participants age 50 and older to contribute more to employer-sponsored retirement plans—such as a 401(k), 403(b), or 457(b)—beyond the standard annual limit.

These contributions are designed to help individuals who:

Started saving later in their careers
Took time away from the workforce
Want to accelerate retirement savings as retirement approaches

For 2026, catch-up contribution limits have been adjusted for inflation and expanded for certain age groups.

Roth Catch-Up Contributions: A Major Change in 2026

One of the most impactful updates affects how catch-up contributions are taxed for higher earners.

Beginning January 1, 2026:

Participants with prior-year FICA wages from the same employer above the IRS threshold (approximately $150,000 for 2026) must make catch-up contributions as Roth (after-tax) contributions
Participants earning below the threshold may continue to choose between pre-tax or Roth catch-up contributions, depending on their plan’s provisions

Why Roth Catch-Up Contributions Matter

Roth contributions are taxed today but grow tax-free, and qualified withdrawals in retirement are also tax-free. While Roth contributions may reduce current take-home pay, they can provide meaningful tax flexibility in retirement, especially for participants who expect higher future tax rates.

Super Catch-Up Contributions for Ages 60–63

For workers nearing retirement, the IRS has introduced an enhanced saving opportunity known as the “super” catch-up contribution.

In 2026:

Participants aged 60, 61, 62, or 63 may contribute up to $11,250 in catch-up contributions
This is higher than the standard catch-up limit of $8,000 for participants age 50 and older

These expanded limits are designed to help late-career employees take advantage of peak earning years and close potential retirement savings gaps.

What These Catch-Up Contribution Changes Mean for Employers

The 2026 catch-up contribution rules affect more than just participants. They also create new administrative considerations for plan sponsors.

Employers should:

Review plan documents to confirm whether Roth and super catch-up contributions are permitted
Coordinate with payroll providers and recordkeepers to ensure systems can apply Roth requirements correctly
Communicate these changes clearly so participants understand their options and potential tax impact

Final Thoughts on Catch-Up Contributions in 2026

Catch-up contributions have long been a powerful retirement planning tool, and the 2026 updates make them even more impactful, especially for workers approaching retirement. At the same time, new Roth requirements add complexity, making education and planning more important than ever.

If you have questions about how catch-up contribution changes affect your retirement plan or personal savings strategy, let’s connect.

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Angela M. Hall, Ph.D., CFP^® is Note’s Senior Financial Advisor and head of the Retirement Planning division at Note Advisors. Angela works closely with business owners who need retirement plan options for their employees. As a Certified Financial Planner®, her mission is to guide you in achieving your most ambitious life and business vision by developing and maintaining custom wealth and retirement plan strategies. Connect with her on LinkedIn

New York Secure Choice Is Coming

Angela Hall on December 17, 2025

What New York State Business Owners Need to Know

New York is taking a major step to expand access to retirement savings, and it has real implications for business owners across New York State.

With the rollout of the New York Secure Choice Retirement Savings Program, private employers with 10 or more employees that don’t currently offer a retirement plan will soon face new registration requirements. This will be the first time retirement benefits have moved from a “nice to have” to a legal mandate.

Let’s dive into what New York State business owners should know and how the right planning approach can turn this mandate into an opportunity.

Which New York Employers Are Affected

Under Secure Choice, private employers will be required to take action if they:

Have been in business for 2 or more years
Employed 10 or more employees in the previous calendar year
Do not currently offer a qualified retirement plan already

New York employers that meet these criteria will need to either register for the state-sponsored Secure Choice program or offer an eligible private retirement plan and claim an exemption.

Registration deadlines will be phased in beginning in 2026, based on employer size.

How We Help New York Businesses Implement the Right Retirement Plan

At Note Advisors, we work closely with New York State business owners to help them choose the plan best for their business and their employees. Our support includes:

Custom plan design
Tailored retirement solutions aligned with your business goals
Employee education & engagement
Ongoing financial education to drive participation and retention
Certified Financial Planners
Expert guidance to minimize administrative burden and stay compliant

Turning a Mandate Into an Opportunity

With Secure Choice deadlines approaching in the Spring of 2026, now is the time for New York State employers to review their retirement plan strategy. Early planning provides more flexibility, avoids last-minute compliance pressure, and allows businesses to implement a plan that supports growth and employee financial well-being.

If you don’t currently offer a retirement plan and would like guidance, I’m here to talk through your options and help you determine the best fit for your business. If you have questions or need help moving forward with confidence, let’s connect.

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