Mandatory 401(k) Roth Catch-up Details Confirmed by IRS January 2025

IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026

Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. If you earn more than $145,000 annually (indexed for inflation), your catch-up contributions to 401(k), 403(b), or 457 plans will now go directly to Roth, rather than pre-tax.

The IRS just released guidance in January 2025 regarding how the new mandatory Roth catch-up provisions will work for high-income earners.  This article dives into everything you need to know!