Tax planning guide
2026-2027 Roth Catch-Up Rules: Wage Threshold and No-Roth Plans
For 2026, an affected age-50-or-older participant with more than $150,000 of 2025 Social Security wages from the sponsoring employer must make catch-up deferrals as Roth. A plan without the required Roth feature cannot simply accept those dollars pre-tax. The ordinary 401(k) deferral can still be pre-tax. The site's 2027 estimate discloses a 2026 baseline while indexed 2027 retirement figures remain unverified.
Separate the regular deferral from catch-up dollars
The published 2026 ordinary 401(k) elective-deferral ceiling is $24,500. An eligible participant age 50 or older can ordinarily add $8,000 of catch-up. For someone attaining age 60, 61, 62 or 63 during the year, the higher catch-up is $11,250 instead, not $11,250 plus $8,000. An eligible age-60 participant can therefore reach $35,750 under these annual dollar limits, assuming enough compensation and a permitting plan.
For a higher earner subject to the Roth rule, the calculator treats the regular portion as pre-tax by assumption and separates the catch-up as Roth. It does not make the entire contribution Roth merely because the wage threshold is exceeded. Nor does it claim a current deduction for the required Roth portion. Other elective deferrals, lower plan limits and compensation restrictions can reduce the available capacity.
Which wages trigger the 2026 Roth requirement?
Compare the prior calendar year's employer Social Security wages with the applicable threshold, not household MAGI or taxable income. For 2026 contributions, the published test is whether 2025 wages from that employer exceed $150,000. Exactly $150,000 does not exceed the threshold. The tax-savings form asks for employer Social Security wages separately from taxable income for this reason.
Do not automatically add a spouse's wages or wages from every unrelated employer. Controlled groups, transfers, successor employers and permitted aggregation can need different plan administration. A self-employed person's net earnings are not automatically the same wage measure. The site's ordinary one-employer 401(k) estimate does not resolve these special arrangements. Ask the administrator which employer wage record and plan provisions govern before making an election.
A plan without Roth catch-up does not create a deduction
The final regulations address a plan that lacks a qualified Roth contribution program: an affected participant cannot make the catch-up under that arrangement. Unchecking a Roth-feature box must therefore not turn otherwise mandatory Roth dollars into deductible pre-tax savings. The calculator blocks that unsupported proposal and asks for a regular-limit contribution or administrator confirmation of the Roth feature.
For example, a 2026 age-55 employee with $160,000 of prior-year employer Social Security wages proposes $32,500. With the necessary plan feature, the modeled split is $24,500 pre-tax and $8,000 Roth. Without it, the tool does not display savings for a $32,500 pre-tax contribution. A proposal of $24,500 or less does not use catch-up capacity and can remain within the modeled ordinary limit.
2026 transition and 2027 indexed amounts
The statutory Roth catch-up requirement starts in 2026 after the administrative transition. The final regulations generally apply to taxable years beginning after December 31, 2026, with special applicability provisions for certain arrangements. These are different dates; the general regulatory date does not mean ordinary higher-earner catch-up automatically stays pre-tax in 2026. Special plan circumstances require independent review rather than an assumed exception.
As of October 22, 2026, the indexed 2027 retirement package was not verified in the reviewed IRS publications. The planning calculator therefore labels the $24,500 regular limit, $8,000 or $11,250 catch-up and $150,000 wage test as 2026 baselines. Its provisional 2027 result is not a final eligibility decision or payroll instruction. Hypothetical 2027 amounts in regulatory examples are not an annual cost-of-living announcement.
IRA deductions and income-tax savings need separate checks
The workplace Roth catch-up requirement does not turn a traditional IRA catch-up into a mandatory workplace Roth contribution. IRA contributions have their own combined Roth/traditional annual limit, compensation rules and deduction phaseouts. The tax-savings form requires confirmation that the modeled traditional IRA amount is fully deductible; otherwise check the dedicated IRA eligibility calculator first and model only the supported deductible amount.
Tax savings are the difference between ordinary federal income tax before and after the supported pre-tax contribution, using the selected filing status. That is more accurate than assuming every contribution dollar saves tax at a single bracket when the deduction crosses a boundary. Credits, phaseouts, state taxes, payroll taxes and future distribution tax remain outside this comparison. A positive saving is a planning result, not proof of a permitted contribution or a guaranteed refund.
Related calculators and guides
401(k) and IRA tax savings calculator
Separate mandatory Roth catch-up from pre-tax savings.
IRA eligibility and deduction calculator
Check compensation and deduction phaseouts before estimating savings.
2027 published and pending tax figures
Check official releases without substituting projections for final amounts.
Frequently asked questions
Does exactly $150,000 of prior-year wages trigger Roth catch-up in 2026?
No. The published 2026 test is wages exceeding $150,000 from the relevant employer. This is not a household income threshold.
Can catch-up stay pre-tax if my employer offers no Roth option?
Not for an affected higher earner under the ordinary rule. The calculator blocks catch-up above the regular limit instead of treating it as deductible. Confirm actual plan provisions with the administrator.
Must all of my 401(k) contribution be Roth?
No. The requirement concerns the affected catch-up portion, not an automatic conversion of regular elective deferrals. The estimator assumes regular contributions are elected pre-tax.
Are the displayed 2027 wage and contribution limits final?
No. They are explicitly disclosed 2026 planning baselines pending verification of the indexed 2027 retirement release. Recheck before setting payroll elections.
Primary and methodology sources
- IRS: final Roth catch-up regulations, T.D. 10033
- IRS: published retirement contribution and Roth wage limits
- IRS: catch-up contributions and age-60-63 limits
- IRS Publication 590-A: IRA contribution and deduction eligibility
Educational planning information only. Official forms, instructions, assessors, and tax agencies control your filed return or tax bill.